Are credit screening contracts designed for men?

Irene Comeig, Ainhoa Jaramillo-Gutiérrez and Federico Ramírez ()
Additional contact information
Federico Ramírez: University of Valencia

Service Business, 2022, vol. 16, issue 4, No 6, 883-905

Abstract: Abstract Access to credit is key to succeed in business. Theoretical models of credit under asymmetric information classify borrowers and grant or deny credit, typically based on incentive-compatible contracts with collateral. However, if women are particularly risk averse, female borrowers may be wrongly classified and denied credit. We conduct in three countries a laboratory experiment to study this systematic gender difference. Results show that incentive-compatible contracts with collateral fail to disclose women’s private information, while disclosing men’s private information. We suggest that banks should incorporate the gender difference in risk attitudes to avoid the glass ceiling in women’s access to credit.

Keywords: Behavioral finance; Credit screening; Entrepreneurship; Experiments; Gender (search for similar items in EconPapers)
JEL-codes: C91 D03 D82 G32 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s11628-022-00485-w Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:svcbiz:v:16:y:2022:i:4:d:10.1007_s11628-022-00485-w

Ordering information: This journal article can be ordered from
http://www.springer.com/business/journal/11628

DOI: 10.1007/s11628-022-00485-w

Access Statistics for this article

Service Business is currently edited by S.M. Lee and J. Millet Roig

More articles in Service Business from Springer, Pan-Pacific Business Association
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().