Work-Life Balance and Firm Performance

Abstract

This paper analyzes the relationship between work-life balance programs (WLB) and corporate financial performance (CFP). Using a large sample of Spanish firms, we expect to find a positive relationship between work-life balance and corporate financial performance. However, we expect the magnitude of this relationship to vary over time and to find a greater magnitude in the long run. Furthermore, we examine the impact of corporate governance (CG) on this relationship and anticipate finding a negative relationship in companies with poor corporate governance. We expect to contribute to several strands of literature. First, we aim to add to the growing employeewellbeing literature by examining the impact of WLB programs on firm financial performance. Second, we extend the literature on governance by showing that the positive relation between WLB and financial performance is only pronounced in firms with high-quality governance mechanisms. Third, we contribute to CSR literature that examines the link between CSR and financial performance. Despite a positive association being documented by prior literature, little evidence is provided on the channels through which CSR enhances firm performance.