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Does a manager's gender matter when accessing credit? Evidence from European data

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  • Moro, Andrea
  • Wisniewski, Tomasz Piotr
  • Mantovani, Guido Massimiliano

Abstract

Firms can be credit constrained either because a loan has been denied by the lender or because they decide not to apply for such a loan due to expected rejection. Using a large sample of European small and medium enterprises, we investigate the relationship between gender and credit constraints. Although no evidence is found that financial institutions are biased against female managers, female-run firms are less likely to file a loan application, as they anticipate being rejected. As a consequence, firms managed by women obtain less bank financing.

Suggested Citation

  • Moro, Andrea & Wisniewski, Tomasz Piotr & Mantovani, Guido Massimiliano, 2017. "Does a manager's gender matter when accessing credit? Evidence from European data," Journal of Banking & Finance, Elsevier, vol. 80(C), pages 119-134.
    • Handle: RePEc:eee:jbfina:v:80:y:2017:i:c:p:119-134
    DOI: 10.1016/j.jbankfin.2017.04.009
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    More about this item

    Keywords

    Gender discrimination; SME; Discouraged borrowers; Credit constraints;
    All these keywords.

    JEL classification:

    • A13 - General Economics and Teaching - - General Economics - - - Relation of Economics to Social Values
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination

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