IDEAS home Printed from https://ideas.repec.org/a/spr/italej/v9y2023i1d10.1007_s40797-021-00180-1.html
   My bibliography  Save this article

Women-led Firms and Credit Access. A Gendered Story?

Author

Listed:
  • Stefania Basiglio

    (Università degli Studi di Torino)

  • Paola Vincentiis

    (Università degli Studi di Torino)

  • Eleonora Isaia

    (Università degli Studi di Torino)

  • Mariacristina Rossi

    (Università degli Studi di Torino)

Abstract

This work focuses on credit access and demand in Italian firms using the RIL dataset, a sample representative of Italian firms, for the year 2015. We investigate whether the gender of the firm’s decision-maker plays a role in requesting and obtaining a loan. Our results suggest that women are significantly less likely to ask for credit, while no significant differences in credit approval are found between the two genders. Moreover, the gender gap disappears for more educated women, as well as for firms in the north of the country.

Suggested Citation

  • Stefania Basiglio & Paola Vincentiis & Eleonora Isaia & Mariacristina Rossi, 2023. "Women-led Firms and Credit Access. A Gendered Story?," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 9(1), pages 199-233, March.
    • Handle: RePEc:spr:italej:v:9:y:2023:i:1:d:10.1007_s40797-021-00180-1
    DOI: 10.1007/s40797-021-00180-1
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s40797-021-00180-1
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s40797-021-00180-1?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Pauric Mcgowan & Sarah Cooper & Mark Durkin & Caroline O'kane, 2015. "The Influence of Social and Human Capital in Developing Young Women as Entrepreneurial Business Leaders," Journal of Small Business Management, Taylor & Francis Journals, vol. 53(3), pages 645-661, July.
    2. Levenson, Alec R & Willard, Kristen L, 2000. "Do Firms Get the Financing They Want? Measuring Credit Rationing Experienced by Small Business in the U.S," Small Business Economics, Springer, vol. 14(2), pages 83-94, March.
    3. 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.
    4. 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.
    5. Eckel, Catherine C. & Grossman, Philip J., 2008. "Men, Women and Risk Aversion: Experimental Evidence," Handbook of Experimental Economics Results, in: Charles R. Plott & Vernon L. Smith (ed.), Handbook of Experimental Economics Results, edition 1, volume 1, chapter 113, pages 1061-1073, Elsevier.
    6. 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.
    7. Cowan, Kevin & Drexler, Alejandro & Yañez, Álvaro, 2015. "The effect of credit guarantees on credit availability and delinquency rates," Journal of Banking & Finance, Elsevier, vol. 59(C), pages 98-110.
    8. Guzman, Jorge & Kacperczyk, Aleksandra (Olenka), 2019. "Gender gap in entrepreneurship," Research Policy, Elsevier, vol. 48(7), pages 1666-1680.
    9. Noemi Oggero & Maria Cristina Rossi & Elisa Ughetto, 2020. "Entrepreneurial spirits in women and men. The role of financial literacy and digital skills," Small Business Economics, Springer, vol. 55(2), pages 313-327, August.
    10. Chihmao Hsieh & Simon C. Parker & C. Mirjam Praag, 2017. "Risk, balanced skills and entrepreneurship," Small Business Economics, Springer, vol. 48(2), pages 287-302, February.
    11. Berger, Allen N. & Udell, Gregory F., 2006. "A more complete conceptual framework for SME finance," Journal of Banking & Finance, Elsevier, vol. 30(11), pages 2945-2966, November.
    12. Maria Lucia Stefani & Valerio Vacca, 2013. "Credit access for female firms: evidence from a survey on European SMEs," Questioni di Economia e Finanza (Occasional Papers) 176, Bank of Italy, Economic Research and International Relations Area.
    13. Berger, Allen N & Udell, Gregory F, 1995. "Relationship Lending and Lines of Credit in Small Firm Finance," The Journal of Business, University of Chicago Press, vol. 68(3), pages 351-381, July.
    14. Elizabeth Asiedu & James A. Freeman & Akwasi Nti-Addae, 2012. "Access to Credit by Small Businesses: How Relevant Are Race, Ethnicity, and Gender?," American Economic Review, American Economic Association, vol. 102(3), pages 532-537, May.
    15. 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.
    16. Leora F. Klapper & Simon C. Parker, 2011. "Gender and the Business Environment for New Firm Creation," The World Bank Research Observer, World Bank, vol. 26(2), pages 237-257, August.
    17. Allen N. Berger & Gregory F. Udell, 2002. "Small Business Credit Availability and Relationship Lending: The Importance of Bank Organisational Structure," Economic Journal, Royal Economic Society, vol. 112(477), pages 32-53, February.
    18. Popov, Alexander & Udell, Gregory F., 2012. "Cross-border banking, credit access, and the financial crisis," Journal of International Economics, Elsevier, vol. 87(1), pages 147-161.
    19. Alberto F. Alesina & Francesca Lotti & Paolo Emilio Mistrulli, 2013. "Do Women Pay More For Credit? Evidence From Italy," Journal of the European Economic Association, European Economic Association, vol. 11, pages 45-66, January.
    20. Meoli, Azzurra & Fini, Riccardo & Sobrero, Maurizio & Wiklund, Johan, 2020. "How entrepreneurial intentions influence entrepreneurial career choices: The moderating influence of social context," Journal of Business Venturing, Elsevier, vol. 35(3).
    21. Francesca Maria Cesaroni & Francesca Lotti & Paolo Emilio Mistrulli, 2013. "Female firms and banks� lending behaviour: what happened during the great recession?," Questioni di Economia e Finanza (Occasional Papers) 177, Bank of Italy, Economic Research and International Relations Area.
    22. Danilo V. Mascia, 2018. "Young Enterprises and Bank Credit Denials," Working Papers id:12814, eSocialSciences.
    23. Elisa Ughetto & Mariacristina Rossi & David Audretsch & Erik E. Lehmann, 2020. "Female entrepreneurship in the digital era," Small Business Economics, Springer, vol. 55(2), pages 305-312, August.
    24. Jovanovic, Boyan, 1982. "Selection and the Evolution of Industry," Econometrica, Econometric Society, vol. 50(3), pages 649-670, May.
    25. 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.
    26. Mascia, Danilo V., 2018. "Young Enterprises and Bank Credit Denials," ADBI Working Papers 844, Asian Development Bank Institute.
    27. Brad M. Barber & Terrance Odean, 2001. "Boys will be Boys: Gender, Overconfidence, and Common Stock Investment," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 116(1), pages 261-292.
    28. Chunfang Cao & Kam C. Chan & Wenxuan Hou & Fansheng Jia, 2019. "Does religion matter to informal finance? Evidence from trade credit in China," Regional Studies, Taylor & Francis Journals, vol. 53(10), pages 1410-1420, October.
    29. Li, Wanli & Xu, Xixiong & Long, Zhineng, 2020. "Confucian Culture and Trade Credit: Evidence from Chinese Listed Companies," Research in International Business and Finance, Elsevier, vol. 53(C).
    30. Rachel Croson & Uri Gneezy, 2009. "Gender Differences in Preferences," Journal of Economic Literature, American Economic Association, vol. 47(2), pages 448-474, June.
    31. Powell, Melanie & Ansic, David, 1997. "Gender differences in risk behaviour in financial decision-making: An experimental analysis," Journal of Economic Psychology, Elsevier, vol. 18(6), pages 605-628, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Oladele, Oladimeji Idowu, 2023. "Access to Livelihood Capital and Food Security Status as Correlates to Empowerment Among Women on Irrigation Schemes in North-West Province, South Africa," Problems of World Agriculture / Problemy Rolnictwa Światowego, Warsaw University of Life Sciences, vol. 23(2), June.
    2. Arcuri, Maria Cristina & Di Tommaso, Caterina & Pisani, Raoul, 2024. "Does gender matter in financing SMEs in green industry?," Research in International Business and Finance, Elsevier, vol. 69(C).
    3. Sharmina Afrin & Mohammad Shamsul Hoque & Bina Akter, 2024. "Women’s Leadership Development Through Entrepreneurship in Bangladesh," Management and Labour Studies, XLRI Jamshedpur, School of Business Management & Human Resources, vol. 49(2), pages 208-240, May.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. 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.
    2. Francesco Campanella & Luana Serino, 2019. "Gender and Financial Constraints: An Empirical Investigation in Italy," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 10(2), pages 109-120, April.
    3. Stefania Basiglio & Paola De Vincentiis & Eleonora Isaia & Mariacristina Rossi, 2019. "Credit Access and Approval," Working papers 061, Department of Economics, Social Studies, Applied Mathematics and Statistics (Dipartimento di Scienze Economico-Sociali e Matematico-Statistiche), University of Torino.
    4. Basiglio, Stefania, 2018. "Essays on financial behaviour of households and firms," Other publications TiSEM c13423c5-8bf2-44a7-baa7-3, Tilburg University, School of Economics and Management.
    5. Reynal-Querol, Marta & García-Montalvo, José, 2020. "Gender And Credit Risk: A View From The Loan Officer'S Desk," CEPR Discussion Papers 14500, C.E.P.R. Discussion Papers.
    6. José García-Montalvo & Marta Reynal-Querol, 2019. "Gender and Credit Risk: A View From the Loan Officer’s Desk," Working Papers 1076, Barcelona School of Economics.
    7. José Garcia Montalvo & Marta Reynal-Querol, 2019. "Gender and credit risk: a view from the loan officer's desk," Economics Working Papers 1644, Department of Economics and Business, Universitat Pompeu Fabra.
    8. Chen, Xiao & Huang, Bihong & Ye, Dezhu, 2019. "The Gender Gap in Peer-to-Peer Lending: Evidence from the People’s Republic of China," ADBI Working Papers 977, Asian Development Bank Institute.
    9. Chen, Xiao & Huang, Bihong & Ye, Dezhu, 2020. "Gender gap in peer-to-peer lending: Evidence from China," Journal of Banking & Finance, Elsevier, vol. 112(C).
    10. 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.
    11. de Andrés, Pablo & Gimeno, Ricardo & Mateos de Cabo, Ruth, 2021. "The gender gap in bank credit access," Journal of Corporate Finance, Elsevier, vol. 71(C).
    12. Vojtech Bartos & Silvia Castro & Kristina Czura & Timm Opitz, 2023. "Gendered Access to Finance: The Role of Team Formation, Idea Quality, and Implementation Constraints in Business Evaluations," Rationality and Competition Discussion Paper Series 473, CRC TRR 190 Rationality and Competition.
    13. Andrea Bellucci & Alexander Borisov & Alberto Zazzaro, 2011. "Do Male and Female Loan Officers Differ in Small Business Lending? A Review of the Literature," Contributions to Economics, in: Giorgio Calcagnini & Ilario Favaretto (ed.), The Economics of Small Businesses, chapter 0, pages 195-219, Springer.
    14. Claudia Piras & Andrea Filippo Presbitero & Roberta Rabellotti, 2013. "Definitions Matter: Measuring Gender Gaps in Firms' Access to Credit," Mo.Fi.R. Working Papers 90, Money and Finance Research group (Mo.Fi.R.) - Univ. Politecnica Marche - Dept. Economic and Social Sciences.
    15. Steven Ongena & Alexander Popov, 2016. "Gender Bias and Credit Access," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 48(8), pages 1691-1724, December.
    16. Jean-Christophe Statnik & Thi-Le-Giang Vu & Laurent Weill, 2023. "Does Corruption Discourage More Female Entrepreneurs from Applying for Credit?," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 65(1), pages 1-28, March.
    17. Radeef Chundakkadan & Subash Sasidharan, 2022. "Gender gap and access to finance: A cross‐country analysis," Review of Development Economics, Wiley Blackwell, vol. 26(1), pages 180-207, February.
    18. Emma Galli & Danilo V. Mascia & Stefania P. S. Rossi, 2020. "Bank credit constraints for women‐led SMEs: Self‐restraint or lender bias?," European Financial Management, European Financial Management Association, vol. 26(4), pages 1147-1188, September.
    19. Francesca Maria Cesaroni & Francesca Lotti & Paolo Emilio Mistrulli, 2013. "Female firms and banks� lending behaviour: what happened during the great recession?," Questioni di Economia e Finanza (Occasional Papers) 177, Bank of Italy, Economic Research and International Relations Area.
    20. Pavlova, Elitsa & Gvetadze, Salome, 2023. "Female access to finance: A survey of literature," EIF Working Paper Series 2022/87, European Investment Fund (EIF).

    More about this item

    Keywords

    Credit demand; Italian firms; Gender;
    All these keywords.

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • H81 - Public Economics - - Miscellaneous Issues - - - Governmental Loans; Loan Guarantees; Credits; Grants; Bailouts
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:italej:v:9:y:2023:i:1:d:10.1007_s40797-021-00180-1. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.