Men are from Mars, women are from Venus: on lenders’ stereotypical views and the implications for a firm’s debt

Bannò, Mariasole; D’Allura, Giorgia Maria; Coller, Graziano; Varum, Celeste

doi:10.1007/s10997-022-09641-w

Cited by 9 publications

(6 citation statements)

References 141 publications

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“…In line with the recent call (Rubino et al, 2021), future studies may consider additional corporate governance mechanisms such as lead independent directors, board meeting frequency, board makeup, management ownership and foreign ownership. Finally, we have observed gender diversity under the lens of agency theory, future studies could use alternative theoretical approaches to investigate the role of women in FinTech and the financial structure of banks such as the critical mass theory (Joecks et al, 2013) or social construction theory (Bann o et al, 2022).…”

Section: Discussionmentioning

confidence: 85%

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Governing FinTech for performance: the monitoring role of female independent directors

Arena

Catuogno

Naciti

2023

EJIM

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PurposeThe use of digital technologies in the financial service industry has brought new complexities to the corporate governance in banks. Relying on the agency perspective of the shareholder, debtholder and societal governance in banks, this research examines the impact of financial technology innovation (FinTech) on banks' performance by enlightening the monitoring role of female independent directors.Design/methodology/approachRelying on a sample of Italian banks observed during the period 2016–2020, the authors hand-collected data on the use of FinTech by considering (1) the in-house provisions of FinTech solutions, (2) the collaboration with external FinTech firms and (3) a combination of both measures. The authors run a panel data regression analysis with fixed effects, measuring bank performance through bank competitiveness and bank riskiness.FindingsThe authors find that FinTech increases bank competitiveness in gathering money from depositors and that independent women on board mitigate the negative relationship between FinTech and the riskiness of banks' assets, ameliorating the conflicting interests among shareholders, debtholder and societal governance.Originality/valueThis study emphasizes the complexities of bank governance when dealing with FinTech in the wider perspective of equity governance, debt governance and the societal governance spotlighting the importance of appointing female directors in independent positions to enhance the bright sides of financial innovation. The authors enrich the literature on FinTech with a finer understanding of the drivers and implications of in-house provisions of FinTech solutions versus the collaboration with external FinTech firms.

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Section: Discussionmentioning

confidence: 85%

“…Finally, we have observed gender diversity under the lens of agency theory, future studies could use alternative theoretical approaches to investigate the role of women in FinTech and the financial structure of banks such as the critical mass theory (Joecks et al. , 2013) or social construction theory (Bannò et al. , 2022).…”

Section: Discussionmentioning

confidence: 94%

Governing FinTech for performance: the monitoring role of female independent directors

Arena

Catuogno

Naciti

2023

EJIM

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“…The hypothesis aligns with Agency Theory, which posits that diverse board composition can lead to more effective governance and decision-making. Female representation on boards is associated with cautious and transparent decisionmaking, particularly relevant in managing the complexities of alternative finance (Bannò et al, 2023;Khemakhem et al, 2022). This prudent approach may result in lower risk perceptions among lenders, potentially leading to reduced costs of debt for such firms.…”

Section: Hypothesis Developmentmentioning

confidence: 99%

Alternative finance in bank-firm relationship: how does board structure affect the cost of debt?

Palmieri,

Geretto,

Polato

et al. 2024

J Manag Gov

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In this paper, we examine the relationship between alternative finance and board structure on the cost of debt for firms, focusing on the unique effects of differing board characteristics. Using a dataset of 176 European listed companies observed annually from 2013 to 2022, we dissect this relationship through several hypotheses considering factors such as the supply of alternative finance, board gender composition, age, expertise, and board turnover. Our findings reveal that increased alternative finance credit supply escalates the cost of debt, especially for firms with lower ESG scores. Firms with young boards, boards specialized in economics or low, and board turnover also experience a rise in borrowing costs with increasing of alternative finance. Through a pooling 2SLS model, we provide robust evidence about the interplay of alternative finance and varying board structures on the cost of debt. This research clarifies the intricacies of bank-firm relationships in alternative finance and holds significant implications for supervisory authorities, banks, and policymakers. It underscores the necessity of good corporate governance in managing the cost implications of alternative finance. It calls for tailored risk assessment strategies, conducive regulatory frameworks, and vigilant supervisory approaches to create a resilient financial ecosystem where alternative finance can thrive without inordinately inflating the cost of debt.

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“…Although women often outperform men in financial activities (Bannò et al, 2022), they are targets of discrimination and stereotypes on their level of knowledge about banking activity relative to their male counterparts. Most strategies from the global microfinance industry to determine its targeting are indeed gender‐based (Drori et al, 2020).…”

Section: Conceptual Frameworkmentioning

confidence: 99%

Neighbourhood social capital, account usage and savings behaviour in low‐income countries: Field experimental evidence from Senegal

Behr¹,

Jacob

2023

J of Intl Development

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Financial inclusion is an important driver of economic growth, but gender gaps persist in financial activity, especially in low‐income countries. This study analyses the impact of text messages that make salient neighbours' savings behaviour on account usage and savings behaviour of low‐income men and women in Senegal. We performed a randomized field experiment in which 2056 clients of a local financial institution were assigned to one of three experimental conditions. We found gender differences in how these text messages impact savings and account usage. Account usage, account activity and average savings balances of female clients who received weekly savings reminders making their neighbours' savings behaviour salient increased compared to those who received generic savings reminders and those who received no savings reminders. The treatment had no impact on male clients. These results suggest that content‐specific text message reminders can create benefits for both the supply and demand side of financial services for women in low‐income countries, thereby increasing financial inclusion.

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Men are from Mars, women are from Venus: on lenders’ stereotypical views and the implications for a firm’s debt

Cited by 9 publications

References 141 publications

Governing FinTech for performance: the monitoring role of female independent directors

Governing FinTech for performance: the monitoring role of female independent directors

Alternative finance in bank-firm relationship: how does board structure affect the cost of debt?

Neighbourhood social capital, account usage and savings behaviour in low‐income countries: Field experimental evidence from Senegal

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