Does Gender Matter in Bank-Firm Relationships? Evidence from Small Business Lending

Bellucci, Andrea; Борисов, А. В.; Zazzaro, Alberto

doi:10.2139/ssrn.1489371

Cited by 58 publications

(67 citation statements)

References 72 publications

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“…The results of Belluchi, Borisov and Zazzaro (2010), who examined the gender-based discrimination in bank financing in the Italian market using credit fie data from 7 800 small businesses, show that female entrepreneurs are faced with some strict conditions in the loan contract: higher collateral, lower credit limits and quicker maturity of the loan. They did not find any discrimination in the pricing of the loans and it suggests that similar interest rates are available for both men and women entrepreneurs.…”

Section: Theoretical Backgroundmentioning

confidence: 99%

The Effect of Business Environment and Entrepreneurs’ Gender on Perception of Financial Risk in The Smes Sector

Kozubíková¹,

Homolka²,

Kristalas³

2017

JOC

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Small and medium-sized enterprises (SMEs) are crucial, and not only for the Czech economy. Their sustainable growth is important for the economy of most European countries. Because of this, the issues surrounding their financing, government support and public perception are widely discussed. The problems connected with external financing of SMEs are closely related to effective management of financial risk, which can minimize competition, create better financial structure and increase the firm's competitiveness. Our results of the questionnaire survey in the Czech Republic in 2015 were obtained using Structural Equation Modelling (SEM) and revealed a factor which the male sample believed to be an important influence on the perception of financial risk is a bank's approach to business. This factor is significantly influenced by knowledge, rules and principles including the knowledge of banks' credit conditions, their transparency and the ability of entrepreneurs to manage financial risks. In the female sample, state and public perception showed to be much more important in the perception of financial risk. Male entrepreneurs mitigate financial risks through a bank's assistance whereas female entrepreneurs emphasize the role of society.

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Section: Theoretical Backgroundmentioning

confidence: 99%

The Effect of Business Environment and Entrepreneurs’ Gender on Perception of Financial Risk in The Smes Sector

Kozubíková¹,

Homolka²,

Kristalas³

2017

JOC

View full text Add to dashboard Cite

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“…Generally, research has demonstrated the impact between a smaller number of women business angels and the gender-gap in angel funding rates and a tendency for women angels to refuse financing to women entrepreneurs, although they are more likely to seek funding from other women (Becker-Blease and Sohl 2007). Other scholars have explored loan-officers' decision-making in the UK and Italy, suggesting that their sex influences lending decisions (Bellucci, Borisov, and Zazzaro 2010;Carter et al 2007;Wilson et al 2007).…”

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confidence: 99%

Women entrepreneurs’ financing revisited: taking stock and looking forward

2018

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“…Additional evidence on gender discrimination in Italian small business lending is provided by Bellucci, Borisov and Zazzaro (2009). Buvinic andBerger (1990) andFletschner (2009) show that women keep being more credit-rationed than men by MFIs.…”

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confidence: 99%

Microfinance and Gender: Is There a Glass Ceiling in Loan Size?

Agier

Szafarz

2010

SSRN Journal

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Microfinance institutions serve a majority of female borrowers. But do men and women benefit from same credit conditions? This paper investigates this issue by presenting an original model and testing its predictions on an exceptional database including 34,000 loan applications from a Brazilian microfinance institution over an eleven-year period. The model considers a lender that offers standardized loan contracts with a fixed interest rate, which is common practice in microfinance. It demonstrates that biased loan attribution may lead to three different outcomes, depending on the bias intensity: 1) denial of all applications from a given group, 2) a "glass ceiling" effect, namely loan downsizing of the largest projects from a given group, or 3) no impact. The empirical analysis detects no gender bias in approval rate, but uncovers a glass ceiling effect hurting female applicants. Moreover, this effect is insensitive to the credit officer's gender. In conclusion, the good news is that the microfinance practice does ensure a fair access to credit. The bad news is the presence of a glass ceiling faced by female entrepreneurs with larger projects. AbstractMicronance institutions serve a majority of female borrowers. But do men and women benet from same credit conditions ? This paper investigates this issue by presenting an original model and testing its predictions on an exceptional database including 34,000 loan applications from a Brazilian micronance institution over an eleven-year period. The model considers a lender that oers standardized loan contracts with a xed interest rate, which is common practice in micronance. It demonstrates that biased loan attribution may lead to three dierent outcomes, depending on the bias intensity: 1) denial of all applications from a given group, 2) a glass ceiling eect, namely loan downsizing of the largest projects from a given group, or 3) no impact. The empirical analysis detects no gender bias in approval rate, but uncovers a glass ceiling eect hurting female applicants. Moreover, this eect is insensitive to the credit ocer's gender. In conclusion, the good news is that the micronance practice does ensure a fair access to credit. The bad news is the presence of a glass ceiling faced by female entrepreneurs with larger projects.

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Does Gender Matter in Bank-Firm Relationships? Evidence from Small Business Lending

Cited by 58 publications

References 72 publications

The Effect of Business Environment and Entrepreneurs’ Gender on Perception of Financial Risk in The Smes Sector

The Effect of Business Environment and Entrepreneurs’ Gender on Perception of Financial Risk in The Smes Sector

Women entrepreneurs’ financing revisited: taking stock and looking forward

Microfinance and Gender: Is There a Glass Ceiling in Loan Size?

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