Publication Type
Working Paper
Version
publishedVersion
Publication Date
11-2023
Abstract
We document a drastic increase in female-owned manufacturing firms in South Korea after the 1997 financial crisis. During the crisis, a major banking sector reform was conducted, and many underperforming bank branches were forced to close down. Using a geographical variation of bank branch closures during the reform, we show that the banking sector reform resulted in a rise in female entrepreneurship. We present evidence that male-owned firms were preferred by the closeddown bank branches, despite female-owned firms exhibiting lower risks and higher returns. The banking sector reform, although not explicitly aimed at addressing gender disparities, substantially benefited female entrepreneurs by improving efficiency in the financial market.
Discipline
Econometrics
Research Areas
Econometrics
First Page
1
Last Page
103
Embargo Period
1-2-2023
Citation
LEE, Jungho and MYONG, Sunha.
Financial crisis and female entrepreneurship: Evidence from South Korea. (2023). 1-103.
Available at: https://ink.library.smu.edu.sg/soe_research/2651
Copyright Owner and License
Authors
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.