Open AccessGender and Financial Constraints: An Empirical Investigation in Italy
Author(s) -
Francesco Campanella,
Luana Serino
Publication year - 2019
Publication title -
international journal of financial research
Language(s) - English
Resource type - Journals
eISSN - 1923-4031
pISSN - 1923-4023
DOI - 10.5430/ijfr.v10n2p109
Subject(s) - loan , sample (material) , bank credit , ask price , business , capital (architecture) , economics , finance , monetary economics , history , chemistry , archaeology , chromatography
Firms can be credit constrained either because they decide not to apply for such a loan due to expected rejection or because the application has been rejected by the bank. Using a sample of 428 Italian small and medium enterprises, we investigate the relationship between gender and credit constraints. Controlling for other variables, findings reveal that lenders discriminate against women on the basis solely of gender in terms of access to capital. As a consequence, women-run firms obtain less bank financing, although they are not afraid to ask for credit.