Gender, Credit, and Firm Outcomes

51 Pages Posted: 23 Oct 2019 Last revised: 2 Jan 2020

See all articles by Manthos D. Delis

Manthos D. Delis

Audencia Business School

Iftekhar Hasan

Fordham University ; Bank of Finland; University of Sydney

Maria Iosifidi

University of Surrey - Surrey Business School

Steven Ongena

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

Date Written: December 18, 2019

Abstract

Small and micro enterprises are usually majority owned by entrepreneurs. Using a unique sample of loan applications from such firms, we study the role of owners’ gender in the credit decision of banks and the post-credit decision firm outcomes. We find that, ceteris paribus, female entrepreneurs are more prudent loan applicants, with both the probabilities to apply for credit and of firm default after the loan origination being smaller. However, the relatively more aggressive behavior of male applicants pays off in terms of higher average firm performance after the loan origination.

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 (December 18, 2019). Swiss Finance Institute Research Paper No. 19-70, Available at SSRN: https://ssrn.com/abstract=3469613 or http://dx.doi.org/10.2139/ssrn.3469613

Manthos D. Delis (Contact Author)

Audencia Business School ( email )

8 Road Joneliere
BP 31222
Nantes Cedex 3, 44312
France

Iftekhar Hasan

Fordham University ( email )

45 COLUMBUS AVENUE
GBA-5TH FLOOR
NEW YORK, NY 10023
United States

Bank of Finland ( email )

P.O. Box 160
Helsinki 00101
Finland

University of Sydney ( email )

P.O. Box H58
Sydney, NSW 2006
Australia

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

NTNU Business School ( email )

Norway

Centre for Economic Policy Research (CEPR)

London
United Kingdom

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