Credit Access for Small Firms in the Euro Area: Does Gender Matter?

Stefani, Maria Lucia; Vacca, Valerio

doi:10.1007/978-3-319-41363-1_4

Cited by 8 publications

(12 citation statements)

References 15 publications

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“…Previous research suggests that female entrepreneurs face disadvantages in traditional financing conduits, including in banking (e.g., Aristei & Gallo, 2016;Eddleston et al, 2016;Mascia & Rossi, 2017;Moro et al, 2017), initial public offerings (IPOs) (e.g., Bigelow et al, 2014), venture capital (e.g., Lins & Lutz, 2016;Malmström et al, 2017), and angel investments (e.g., Becker-Blease & Sohl, 2007;Stefani & Vacca, 2015). Much of this literature argues that because of the existence of gender-based discrimination (Cozarenco & Szafarz, 2018;Eagaly & Mladinic, 1989;Eckes, 2002;Xie & Lv, 2016), female-led businesses have restricted access to credit (Aristei & Gallo, 2016).…”

Section: Female Entrepreneurs Financingmentioning

confidence: 99%

“…Much of this literature argues that because of the existence of gender-based discrimination (Cozarenco & Szafarz, 2018;Eagaly & Mladinic, 1989;Eckes, 2002;Xie & Lv, 2016), female-led businesses have restricted access to credit (Aristei & Gallo, 2016). Additionally, there is research that shows that female-owned firms often have shorter business banking relationships than male-owned firms, which indicates that women do not benefit from the same types of strong banking relationships that men do (e.g., Madill et al, 2006), and because of this situation, female-owned businesses have greater challenges in obtaining loans than male-owned businesses (Madill et al, 2006;Moro et al, 2017;Stefani & Vacca, 2015). The research also demonstrates that many investors perceive female founders as less capable than their male counterparts, which inherently makes female-owned firms a less attractive investment for many investors (e.g., Balachandra et al, 2019;Bigelow et al, 2014;Eagaly & Karau, 2002).…”

Section: Female Entrepreneurs Financingmentioning

confidence: 99%

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Female entrepreneurs and equity crowdfunding: the consequential roles of lead investors and venture stages

2020

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Previous research has found that female entrepreneurs are disadvantaged in traditional funding markets. Yet, whether the same conclusion can be drawn in the equity crowdfunding market has not yet been determined. Leveraging both stereotype content theory and warm-glow theory, and based on a data set drawn from 259 projects from three equity crowdfunding platforms in China between October 2014 and April 2019, this study empirically examines the underlying relationship between female entrepreneurs and equity crowdfunding. Using Poisson regression analysis, we find that female entrepreneurs are more likely to be funded through equity crowdfunding than their male counterparts. Moreover, we use the presence or absence of lead investors and venture stage (i.e., early versus late) as potential moderators. Our results reveal that while lead investors augment the financing advantage of female entrepreneurs in the equity crowdfunding market, this advantage is weakened in later-development-stage ventures. The findings of this research contribute to the equity crowdfunding and the female entrepreneurship literature by showing that an entrepreneur's gender influences equity crowdfunding performance. Our findings also extend previous research by demonstrating that both lead investors and venture stage moderate the impact of gender in the equity crowdfunding market.

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Section: Female Entrepreneurs Financingmentioning

confidence: 99%

Section: Female Entrepreneurs Financingmentioning

confidence: 99%

Female entrepreneurs and equity crowdfunding: the consequential roles of lead investors and venture stages

2020

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“…Moreover, women are reluctant to accept bank credit since they are afraid to lose control over their business (Watson et al, 2009). Stefani and Vacca (2015) in the context of Germany, Italy, France and Spain found that women are less motivated to get loans from banks since they are afraid that their application will be rejected. Hence, women are more interested to use credit from their family members, friends and relatives.…”

Section: Hypothesis 1amentioning

confidence: 99%

“…A study also showed that higher interest rate is one of the most significant factors for SMEs causing loan default as the higher price of loans increases the debt burden for SMEs (Chaibi and Ftiti, 2015). Nevertheless, many factors affect interest rates on loan contract, such as relationship lending, availability of collateral, credit market concentration and competition, bank size and bank ownership type, borrower characteristics, firm characteristics, loan maturity, loan size and others (Berger and Udell, 2002;Cole, 1998;Carter et al, 2004;Rahman et al, 2016a;Menkhoff et al, 2012;Steijvers et al, 2010;Godlewski and Weill, 2011;Berger et al, 2011;Brick and Palia, 2007;Chakraborty and Hu, 2006;Hernandez-Canovas and Martinez-Solano, 2010;Petersen and Rajan, 2002;Bonini et al, 2015;Beck et al, 2011;Mian, 2003;Rahman et al, 2016b;Neuberger and Rathke-Doppner, 2015;Stefani and Vacca, 2015). An empirical research shows that borrowers are discouraged to get loans from banks when the cost of loans are too high because it increases their debt burden and that can negatively affect the value of the firm (Hernandez-Canovas and Martinez-Solano, 2010).…”

Section: H5: Availability Of Collateral Increases Access To Financementioning

confidence: 99%

Determinants of SME Finance: Evidence from Three Central European Countries

Rahman

Belás

2017

Review of Economic Perspectives

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This paper explores the determinants of access to finance for small and medium enterprises (SMEs) in the context of three Central European countries: Czech Republic, Slovak Republic, and Hungary. The data set of the research is obtained from the BEEPS survey, which is conducted by the World Bank and the European Bank for Reconstruction and Development. This paper empirically analyses firms not only from the SMEs point of view, but also shows results for micro, small and medium enterprises separately. Additionally, we have analysed the determinants of access to finance for SMEs at each country level for an in-depth understanding of country-level variations in SME financing. The results indicate that micro firms and firms owned and operated by women are experiencing a shortage of credits from banks. On the other hand, we found a positive relationship between the pledge of collateral and access to finance. With respect to the medium firms, we found evidence that innovative firms have a larger amount of credit from banks. The empirical results also suggest that the loan size increases as the interest rates increase in particular for SMEs on the whole and for micro-firms, although the interest rate is in a negative relationship with the loan size in Czech Republic.

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“…Few papers have specifically addressed the issue of gender in credit markets utilizing European data. Stefani and Vacca (2015) investigate whether gender affects SMEs' access to credit in the four largest European countries -Germany, France, Italy and Spain. They find that female firms face more difficulties than their male counterparts in accessing bank credit mostly because of their characteristics (firm size, age and sector of activity) rather than because of gender-discrimination.…”

Section: Gender and Bank Credit Accessmentioning

confidence: 99%

Does Corruption Influence the Self-Restraint Attitude of Women-led SMEs towards Bank Lending?

Galli

Mascia

Rossi

2018

CESifo Economic Studies

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In this paper we address the question of whether the perceived level of corruption in a country may influence women's inclination in self-refraining from applying for bank loans. Using a sample of 60,058 observationsdrawn from the ECB-SAFErelated to SMEs chartered in 11 Euro-area countries during the period 2009-2014, we first investigate whether female-led businesses are more likely, than male-led ones, to refrain from applying for bank credit. Finally, we assess whether corruption actually matters in the women's decision not to relying on the bank-lending channel. Our resultsrobust to various model specificationshighlight that women-led SMEs face a higher probability to self-refrain from applying for loans vis-à-vis their male counterparts. In addition, although corruption appears strongly correlated to the selfrestraint attitudes of firms, our empirical analysis reveals that women-led SMEs generally tend to refrain from applying for loans, more than men, regardless of the quality of the surrounding environment.

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Credit Access for Small Firms in the Euro Area: Does Gender Matter?

Cited by 8 publications

References 15 publications

Female entrepreneurs and equity crowdfunding: the consequential roles of lead investors and venture stages

Female entrepreneurs and equity crowdfunding: the consequential roles of lead investors and venture stages

Determinants of SME Finance: Evidence from Three Central European Countries

Does Corruption Influence the Self-Restraint Attitude of Women-led SMEs towards Bank Lending?

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