Gender, Credit, and Firm Outcomes

47 Pages Posted: 23 Oct 2019

See all articles by Manthos D. Delis

Manthos D. Delis

Montpellier Business School

Iftekhar Hasan

Fordham University - Gabelli School of Business; Bank of Finland

Maria Iosifidi

University of Surrey - Surrey Business School

Steven Ongena

University of Zurich - Department of Banking and Finance; Swiss Finance Institute; KU Leuven; Centre for Economic Policy Research (CEPR)

Date Written: October 14, 2019

Abstract

Is there a gender gap in credit demand or credit supply affecting firm performance? Using a unique sample of loan applications by small and micro enterprises, we find that, ceteris paribus, female entrepreneurs are more prudent loan applicants, who are less likely to apply (or reapply) for credit, and less likely to default after loan origination. However, more proactive behavior of male applicants pays off, yielding higher average firm performance after loan origination. We show that most of the performance gap between small male- and female-owned firms is attributed to the identified gender differences in credit demand.

Keywords: Gender, Loan applications, Bank’s credit decision, Firm profitability and default

JEL Classification: G21, G32, J16

Suggested Citation

Delis, Manthos D. and Hasan, Iftekhar and Iosifidi, Maria and Ongena, Steven R. G., Gender, Credit, and Firm Outcomes (October 14, 2019). Available at SSRN: https://ssrn.com/abstract=3469613 or http://dx.doi.org/10.2139/ssrn.3469613

Manthos D. Delis (Contact Author)

Montpellier Business School ( email )

2300 Avenue des Moulins
Montpellier, 34080
France

Iftekhar Hasan

Fordham University - Gabelli School of Business ( email )

Rose Hill Campus Bronx
New York, NY 10458
United States

Bank of Finland ( email )

P.O. Box 160
Helsinki 00101
Finland

Maria Iosifidi

University of Surrey - Surrey Business School ( email )

Guildford, Surrey GU2 8DN
United Kingdom

Steven R. G. Ongena

University of Zurich - Department of Banking and Finance ( email )

Schönberggasse 1
Zürich, 8001
Switzerland

Swiss Finance Institute

c/o University of Geneva
40, Bd du Pont-d'Arve
CH-1211 Geneva 4
Switzerland

KU Leuven ( email )

Oude Markt 13
Leuven, Vlaams-Brabant 3000
Belgium

Centre for Economic Policy Research (CEPR)

London
United Kingdom

Register to save articles to
your library

Register

Paper statistics

Downloads
24
Abstract Views
111
PlumX Metrics