Does Gender Matter in Bank-Firm Relationships? Evidence from Small Business Lending

49 Pages Posted: 21 Oct 2009

See all articles by Andrea Bellucci

Andrea Bellucci

European Commission

Alexander Borisov

University of Cincinnati - Department of Finance - Real Estate

Alberto Zazzaro

Università Politecnica delle Marche - Faculty of Economics

Date Written: October 15, 2009

Abstract

In this paper we study the relevance of the gender of the contracting parties involved in lending. We show that female entrepreneurs face tighter access to credit, even though they do not pay higher interest rates. The effect is independent of the information available about the borrower and holds if we control for unobservable individual effects. The gender of the loan officer is also important: we find that female officers are more risk-averse or less self-confident than male officers as they tend to restrict credit availability to new, unestablished borrowers more than their male counterparts.

Keywords: Gender-based discrimination, Female-owned enterprises, Loan officers

JEL Classification: G21, G32, J16

Suggested Citation

Bellucci, Andrea and Borisov, Alexander and Zazzaro, Alberto, Does Gender Matter in Bank-Firm Relationships? Evidence from Small Business Lending (October 15, 2009). Available at SSRN: https://ssrn.com/abstract=1489371 or http://dx.doi.org/10.2139/ssrn.1489371

Andrea Bellucci

European Commission ( email )

Belgium

Alexander Borisov

University of Cincinnati - Department of Finance - Real Estate ( email )

College of Business Administration
Cincinnati, OH 45221
United States

Alberto Zazzaro (Contact Author)

Università Politecnica delle Marche - Faculty of Economics ( email )

Piazzale Martelli, 8
60121 Ancona
Italy

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