Working Paper: Female business owners pay higher interest rates on corporate loans

Working Paper - June 2021 - No. 179

Authors Martinello, Alessandro; Mønsted, Bjarke; Matin, Rastin; Steffensen, Sigurd A. M.; Holm Laursen, Karen
Subject Financial sector; Change in interest rates; Credit risk; Statistical method
Type Working paper
Year 2021
Published 25 June 2021
Abstract icon Female owners of small and medium-sized enterprises, on average, pay almost 1 percent higher interest rates than male owners. Firm and loan characteristics explain most of this difference. Nonetheless, a 26 basis point gap cannot be explained, suggesting that female business owners tend to leave a disproportionate share of money on the table during negotiations with credit institutions.