Female entrepreneurs in trouble: do their bad loans last longer?
Paolo Emilio Mistrulli
duration of bad loans, default status, survival analysis
mesheuropmc: education | health care economics and organizations
We investigate the duration of bad loans for a unique data set of sole proprietorships in Italy, finding that bad loans for female firms last longer. However, this result is mainly due to the fact that loans granted to female firms are less frequently written off than those to male ones, suggesting that for banks female firms might be more creditworthy than male firms. These findings are robust to censoring, alternative specifications of the distribution of bad loan duration and other bank-specific control variables.