Gender differences in the repayment of microcredit: The mediating role of trustworthiness

Shahriar, Abu Zafar M. ; Unda, Luisa A. ; Alam, Quamrul

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Document Type: Article
Year of publication: 2020
The title of a journal, publication series: Journal of Banking & Finance
Volume: 110
Issue number: Article 105685
Page range: 105-685
Place of publication: Amsterdam [u.a.]
Publishing house: Elsevier
ISSN: 0378-4266 , 1872-6372
Publication language: English
Institution: Business School > ABWL u. Corporate Finance (Maug 2006-)
Subject: 330 Economics
Classification: JEL: C9 , G21 , O16 , O17 , O21,
Keywords (English): experiments , gender , microcredit , repayment , trust
Abstract: Growing evidence suggests that women are more likely to repay collateral-free microloans than men. However, we know little about what explains such gender differences. We hypothesize that better repayment performance of women microcredit borrowers can largely be explained by gender differences in innate trustworthiness. We conduct a trust game and a microloan repayment game in rural Bangladesh. We find that women are more trustworthy than men and that they are more likely to repay their loans irrespective of any control mechanisms, such as joint liability or dynamic repayment incentives. The results of a mediation test suggest that the gender effect on loan repayment is significantly mediated by differences in innate trustworthiness. We conduct a sensitivity test to check the extent to which unobserved confounders might have influenced the mediation effect, and find no evidence of significant omitted variables bias.

Dieser Datensatz wurde nicht während einer Tätigkeit an der Universität Mannheim veröffentlicht, dies ist eine Externe Publikation.

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