Gender and financial constraints: An empirical investigation in Italy

Abstract

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.