nep-cfn New Economics Papers
on Corporate Finance
Issue of 2025–03–03
eight papers chosen by
Zelia Serrasqueiro, Universidade da Beira Interior


  1. Family firms and their role in the fall of the labor share and the rise of corporate saving in Germany By Jan Behringer; Till van Treeck; Vincent Victor
  2. Does Loan Securitization Expose Borrowers to Non-Bank Investor Shocks?—Evidence from Insurers By Abhishek Bhardwaj; Shan Ge; Saptarshi Mukherjee
  3. Can Public Credit Schemes Improve Access to Finance for Small Businesses ? Evidence from Indonesia By Hillary C. Johnson; Cecile Thioro Niang; Francesco Strobbe; Salman Alibhai
  4. Financial literacy theory of financial inclusion By Ozili, Peterson K
  5. Female Managers and Firm Performance in Europe By Bruno Merlevede
  6. The Uniform Relationship Between Managerial Ability And Bank Loan Quality: Does It Hold? Evidence From Quantile Regressions By Sedki Zaiane; Maria Semenova
  7. Influence of women in Dutch finance 1898-1940 By Mooij, Joke
  8. Financial education programs as a mechanism to achieve financial Inclusion. The experience of the National Center for Financial Education NCFE (India) By Bahloul Naamane; Sihamdi Imad

  1. By: Jan Behringer (Macroeconomic Policy Institute (IMK)); Till van Treeck (University of Duisburg-Essen); Vincent Victor (University of Duisburg-Essen)
    Abstract: This paper investigates the role of family firms in the fall of the labor share and rise in corporate saving in Germany from 1993 to 2019. Combining a new Family Ownership and Governance (FOG) database with financial data, we analyze 929 publicly listed firms. Our findings show that firm-level labor share declines are widespread in Germany, contrasting with findings from the U.S. that link this trend to a few fast-growing superstar firms. Family firms, particularly in manufacturing, experienced sharper decreases in the labor share and stronger increases in corporate saving compared to non-family firms. The level of family involvement in Germany's two-tier board system (management and supervisory board) further affects these outcomes. Despite paying lower wages, we find no evidence that family firms provide greater employment stability. Our results challenge global generalizations about the drivers of the labor share and corporate saving, while emphasizing the macroeconomic relevance of family firms, especially in Germany's corporate sector.
    Keywords: Labor share, corporate saving, family firms
    JEL: D22 D33 G32
    Date: 2025
    URL: https://d.repec.org/n?u=RePEc:imk:wpaper:225-2025
  2. By: Abhishek Bhardwaj; Shan Ge; Saptarshi Mukherjee
    Abstract: CLOs fund 65% of syndicated loans, theoretically insulating borrowers from bank and idiosyncratic investor shocks. However, concentrated capital and sticky relationships expose firms to idiosyncratic shocks to insurers, the largest CLO investors. We find that: 1) insurers experiencing favorable cash flows invest more in CLOs, especially with familiar managers; 2) CLO managers exposed to these cash flows launch more deals; 3) using an instrumental–variable approach, affected firms take out more loans at lower spreads, increase employment, and expand operations; 4) effects are stronger for private than public firms. These findings reveal significant frictions in the loan securitization market.
    JEL: G21 G22 G23 G31 G32
    Date: 2025–02
    URL: https://d.repec.org/n?u=RePEc:nbr:nberwo:33449
  3. By: Hillary C. Johnson; Cecile Thioro Niang; Francesco Strobbe; Salman Alibhai
    Abstract: Examining one of the world’s largest public business support programs, this paper studies how subsidized credit and partial credit guarantees shape access to finance for micro and small businesses in Indonesia. The analysis uses administrative data on more than 8.4 million borrowers and unique quantitative and qualitative data to show that subsidized credit can enable firms to access formal credit for the first time and boost financial inclusion. However, subsidized credit does not alleviate longer-term credit constraints by serving as a stepping stone to unsubsidized commercial credit in this context. The results highlight the challenge of reaching borrowers without collateral, even in programs that explicitly target them using instruments such as partial credit guarantees. The paper sheds light on how public credit schemes for small businesses can be designed to optimize inclusiveness and additionality.
    Date: 2024–09–04
    URL: https://d.repec.org/n?u=RePEc:wbk:wbrwps:10894
  4. By: Ozili, Peterson K
    Abstract: This article proposes a financial literacy theory of financial inclusion. It also presents the different possible scenarios of the relationship between financial literacy, financial illiteracy, financial inclusion and financial exclusion using a grid. The theory argues that financial literacy can influence the level of financial inclusion, and it projects low level of financial literacy as a potential cause of low level of financial inclusion. It showed that people who are financially illiterate and are financially included may not be able to maximise their welfare in the formal financial system because they lack financial literacy. By providing financial literacy programs and other incentives to join the formal financial system, many financially illiterate people will be willing to join the formal financial system and use existing formal financial services to meet their needs. The theory is significant because it explains a major reason why the level of financial inclusion in low in some countries.
    Keywords: theory, financial literacy, financial inclusion, financial education, access to finance, financial literacy theory of financial inclusion
    JEL: G21 G28
    Date: 2025
    URL: https://d.repec.org/n?u=RePEc:pra:mprapa:123588
  5. By: Bruno Merlevede (-)
    Abstract: This paper builds a large pan-European panel dataset of firm-level senior management gender composition. We focus the dataset on firms in the business economy that file unconsolidated accounts and report both total assets and strict positive employment throughout their existence. We have management information for 9 million firms for the period 2005-2020 resulting in 60 million firm-year observations. Overall 40% of observations concerns firms with at least one female manager and 60% are led only by male managers. For (predominantly micro) firms with a single manager that account for 53.5% of observations, we find that only 23% are female-managed. 59.5% of firms with two or more managers have at least one female manager. Across countries between 14% and 66% of observations refer to firms where at least half of the managers are female, across industries variation is more limited and ranges between 20% and 53%. We find that within tight countryindustry- year cells women-led SMEs are smaller and less productive and show lower leverage. Real performance differences are sustained in an event study analysis of switching firms, financial performance differences are not. Female-managed firms show lower short and medium-run growth rates. These effects are small and remain unchanged (also in magnitude) when controlling for leverage. Female-managed firms do not differ in terms of exporting behaviour and responses to import shocks. We find indications that female-managed firms show lower future growth in very uncertain environments, but higher growth in environments characterized by low uncertainty.
    Date: 2025–02
    URL: https://d.repec.org/n?u=RePEc:rug:rugwps:25/1110
  6. By: Sedki Zaiane (National Research University Higher School of Economics); Maria Semenova (National Research University Higher School of Economics)
    Abstract: This study examines the relationship between managerial ability (MA) and bank loan quality, employing a quantile regression model. It analyzes whether the impact of MA on loan quality changes across various quantiles of risk. Using a sample of 126 MENA banks (2006–2020), the results reveal that the impact of MA on bank loan quality varies across loan quality quantiles. Using non-performing loans (NPLs) as a loan quality measure, we find that MA reduces NPLs at moderate quantile levels. This relation becomes inverse at higher level of NPLs. Our findings are strengthened by a quantile-on-quantile regression. These results add to the literature by providing insight between MA and bank loan quality using a non-monotonic methodology.
    Keywords: No
    JEL: C21
    Date: 2025
    URL: https://d.repec.org/n?u=RePEc:hig:wpaper:96/fe/2025
  7. By: Mooij, Joke
    Abstract: This paper focuses on the economic and societal impact of women in the Dutch financial sector during the period 1898-1940 by examining a dozen organisations in banking, insurance as well as brokerage, and by examining a dozen pioneering women with senior positions in finance. During this period, a growing number of well- educated women gained access to a broader range of economic activities and jobs. The organisations and the pioneering women contributed to a public recognition of women as finance professionals and as autonomous clients. Having more women in finance also enabled other women to better manage their finances, meet their credit demand, and insure against occasional loss of income. These developments contributed to female participation and economic growth.
    Keywords: Financial Sector, Gender, Entrepreneurship, Europe
    JEL: G21 G22 G24 J16 L26 N23 N24
    Date: 2025
    URL: https://d.repec.org/n?u=RePEc:zbw:ibfpps:311084
  8. By: Bahloul Naamane (Mohamed Cherif Messaadia University - Université Mohamed-Chérif Messaadia [Souk Ahras]); Sihamdi Imad (Mohamed Cherif Messaadia University - Université Mohamed-Chérif Messaadia [Souk Ahras])
    Abstract: This paper examines the role of the National Centre for Financial Education in promoting financial literacy and inclusion among low-income families in India. The study is based on a comprehensive review of existing literature and available statistics on Indian NCFE coders. The analysis reveals that these programmes have the potential to significantly improve financial culture and inclusion and that financial technology platforms have a role in promoting responsible financial behaviour.
    Keywords: Financial Inclusion, Financial Literacy, Financial Technology (fintech) JEL Classification Codes: D12 D14 O10, Financial Technology (fintech) JEL Classification Codes: D12, D14, O10
    Date: 2023–12–30
    URL: https://d.repec.org/n?u=RePEc:hal:journl:halshs-04521285

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