Gender, Credit, and Firm Outcomes

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 bank credit decisions and post-credit-decision firm outcomes. We find that, ceteris paribus, female entrepreneurs are more prudent loan applicants than are males because they are less likely to apply for credit or to default after loan origination. The relatively more aggressive behavior of male applicants pays off, however, in terms of higher average firm performance after loan origination.

Board gender diversity, feminine culture, and innovation for environmental sustainability

“…This is due to the changing social environment that led to a few seminal academic articles (e.g., Adams & Ferreira, 2009) that stimulated academic discussion. But mainly, the field evolved because the body of literature provided evidence that BGD affects board decisions and firm outcomes (Croson & Gneezy, 2009; Delis et al, 2022). The literature, like the current article, mainly focuses on the impact of BGD on corporate outcomes/governance.…”

Corporate Taxes and Economic Inequality: A Credit Channel

“…Thus, in the first stage we use the full firm-year panel (87,870 observations) and all control variables used in previous regressions, as well as the business owner's gender (dummy variable equal to 1 for male business owners and equal to 0 for female). Delis et al (2022) show that male business owners are more likely to apply for business loans, but this does not directly affect the probability of the bank originating the loan (i.e., there is no evidence of gender discrimination by the bank).…”

“…However, we restrict our analysis to an event study in the window around the corporate tax decrease in the bank's country; thus, our panel covers 2003-2007 (also leaving out crisis-related events). Consistent with Delis et al (2022), we use only loans to firms with a majority owner (individuals owning at least 50% of the firm) who is also the firm's manager. These firms are small and micro enterprises with total assets of less than €10 million.…”

Top management team stability and corporate default risk: The moderating effects of industry competition and strategic deviance

“…It assesses the economic implications of TMT stability from the perspective of corporate default risk, providing deeper insights into the importance of TMT change and stability and enriching the understanding of the economic consequences of TMT stability. (2) While existing literature on the impact of managers on corporate default risk primarily examines the influence of individual manager traits (Delis et al, 2022;Liu et al, 2023), this study expands the research on factors affecting corporate default risk from the perspective of TMT stability. This expansion also aids in comprehensively and objectively understanding the causes of default risk in Chinese listed firms, providing new insights into how to effectively mitigate this issue.…”

“…As direct decision-makers in corporate operations, finance, and strategy, managers undoubtedly play a critical role in influencing corporate default risk (Delis et al, 2022). However, modern corporate demands for operational management have led to major decisions being made by teams to ensure thorough evaluation and judgment (Simons et al, 1999), with their stability greatly impacting the firm's developmental trajectory.…”