Gender Differences in Managerial Turnover in the Context of Family Business: Evidence from South Korea

Abstract

This study investigates gender differences in managerial turnover among top managers in South Korea. While there is a growing literature on the gender diversity in corporate management, we still have little understanding on the gender gap in workplace in the family business context. We address this research gap by examining the Korean corporate context in which the family plays a crucial role in corporate decision making. We argue that the gender gap in managerial turnover for Korean managers is different for family managers and non-family managers and is dependent upon gender composition of the management. We test our predictions using data from senior managers in Korean firms for the period of 2014-2019. The findings show lower exit rates for female managers compared to male managers, especially when they belong to the family (via either kinship or marital ties) of the ultimate firm owner. In addition, we find that lower exit rates by female managers are subject to gender composition among family managers. By empirically documenting gender difference in managerial turnover in the family business context, our study contributes to the research about gender and management and suggest that firms make strategic decisions in their response to the social pressure of gender diversity by keeping female family members in top management.