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Does gender matter for firms' access to credit? Evidence from international data

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  • Aristei, David
  • Gallo, Manuela

Abstract

This paper investigates the existence of gender differences in firms’ access to finance. Based on firm-level data for 28 transitional European countries, we show how estimated gender gaps in credit demand and financial constraints significantly depend on the way in which female participation in ownership and management is measured. Furthermore, we find that differences in credit denial probability are not explained by the observed firm characteristics considered, but are due instead to unexplained factors, thus providing support to the hypothesis of gender-based discrimination in access to credit against women-led businesses.

Suggested Citation

  • Aristei, David & Gallo, Manuela, 2016. "Does gender matter for firms' access to credit? Evidence from international data," Finance Research Letters, Elsevier, vol. 18(C), pages 67-75.
  • Handle: RePEc:eee:finlet:v:18:y:2016:i:c:p:67-75
    DOI: 10.1016/j.frl.2016.04.002
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    References listed on IDEAS

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    1. Aterido, Reyes & Beck, Thorsten & Iacovone, Leonardo, 2013. "Access to Finance in Sub-Saharan Africa: Is There a Gender Gap?," World Development, Elsevier, vol. 47(C), pages 102-120.
    2. David G. Blanchflower & Phillip B. Levine & David J. Zimmerman, 2003. "Discrimination in the Small-Business Credit Market," The Review of Economics and Statistics, MIT Press, vol. 85(4), pages 930-943, November.
    3. Ken S. Cavalluzzo, 2002. "Competition, Small Business Financing, and Discrimination: Evidence from a New Survey," The Journal of Business, University of Chicago Press, vol. 75(4), pages 641-680, October.
    4. Bellucci, Andrea & Borisov, Alexander & Zazzaro, Alberto, 2010. "Does gender matter in bank-firm relationships? Evidence from small business lending," Journal of Banking & Finance, Elsevier, vol. 34(12), pages 2968-2984, December.
    5. Muravyev, Alexander & Talavera, Oleksandr & Schäfer, Dorothea, 2009. "Entrepreneurs' gender and financial constraints: Evidence from international data," Journal of Comparative Economics, Elsevier, vol. 37(2), pages 270-286, June.
    6. Hansen, Henrik & Rand, John, 2014. "Estimates of gender differences in firm’s access to credit in Sub-Saharan Africa," Economics Letters, Elsevier, vol. 123(3), pages 374-377.
    7. Martin Brown & Steven Ongena & Alexander Popov & Pinar Yeşin, 2011. "Who needs credit and who gets credit in Eastern Europe?," Economic Policy, CEPR;CES;MSH, vol. 26(01), pages 93-130, January.
    8. Drakos, Konstantinos & Giannakopoulos, Nicholas, 2011. "On the determinants of credit rationing: Firm-level evidence from transition countries," Journal of International Money and Finance, Elsevier, vol. 30(8), pages 1773-1790.
    9. Andrea F. Presbitero & Roberta Rabellotti & Claudia Piras, 2014. "Barking up the Wrong Tree? Measuring Gender Gaps in Firm's Access to Finance," Journal of Development Studies, Taylor & Francis Journals, vol. 50(10), pages 1430-1444, November.
    10. Henrik Hansen & John Rand, 2014. "The Myth of Female Credit Discrimination in African Manufacturing," Journal of Development Studies, Taylor & Francis Journals, vol. 50(1), pages 81-96, January.
    11. Thomas Bauer & Mathias Sinning, 2008. "An extension of the Blinder–Oaxaca decomposition to nonlinear models," AStA Advances in Statistical Analysis, Springer;German Statistical Society, vol. 92(2), pages 197-206, May.
    12. Elizabeth Asiedu & Isaac Kalonda-Kanyama & Leonce Ndikumana & Akwasi Nti-Addae, 2013. "Access to Credit by Firms in Sub-Saharan Africa: How Relevant Is Gender?," American Economic Review, American Economic Association, vol. 103(3), pages 293-297, May.
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    Cited by:

    1. Taghizadeh-Hesary, Farhad & Yoshino, Naoyuki & Fukuda, Lisa, 2019. "Gender and Corporate Success: An Empirical Analysis of Gender-Based Corporate Performance on a Sample of Asian Small and Medium-Sized Enterprises," ADBI Working Papers 937, Asian Development Bank Institute.
    2. Mascia, Danilo V. & Rossi, Stefania P.S., 2017. "Is there a gender effect on the cost of bank financing?," Journal of Financial Stability, Elsevier, vol. 31(C), pages 136-153.

    More about this item

    Keywords

    Credit constraints; Loan demand; Gender discrimination; Decomposition methods;

    JEL classification:

    • 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
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
    • C34 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Truncated and Censored Models; Switching Regression Models

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