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Female leadership and borrowing constraints: Evidence from an emerging economy

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  • Bui, Anh Tuan
  • Nguyen, Cuong Viet
  • Pham, Thu Phuong
  • Phung, Duc Tung

Abstract

This study investigates the differences in credit access between male-managed and female-managed firms using two Enterprise Censuses in Vietnam. Our findings reveal that women-managed firms are less likely to borrow from commercial banks than their male counterparts, even when controlling for other determinants such as CEO education and experience, firm size, and ownership. No difference in credit access is documented for firms borrowing from non-commercial banks. Once we control for firm characteristics and CEO demographic factors, approved loan size is higher for firms managed by female CEOs regardless of the borrowing source. Using decomposition analysis, we find firm size contributes most in explaining the difference in credit access between female and male-managed companies.

Suggested Citation

  • Bui, Anh Tuan & Nguyen, Cuong Viet & Pham, Thu Phuong & Phung, Duc Tung, 2022. "Female leadership and borrowing constraints: Evidence from an emerging economy," International Review of Financial Analysis, Elsevier, vol. 81(C).
    • Handle: RePEc:eee:finana:v:81:y:2022:i:c:s1057521918304319
    DOI: 10.1016/j.irfa.2019.01.012
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    More about this item

    Keywords

    CEO gender; Credit access; Vietnam;
    All these keywords.

    JEL classification:

    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J54 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Producer Cooperatives; Labor Managed Firms
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance

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