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on Microfinance |
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Issue of 2024–06–24
two papers chosen by Marco Novarese, Università degli Studi del Piemonte Orientale |
| By: | David Aristei; Manuela Gallo; Raoul Minetti |
| Abstract: | This study provides first empirical evidence on the impact of entrepreneurs' financial knowledge on borrower discouragement. Using novel survey data on Italian micro-enterprises, we find that less financially knowledgeable entrepreneurs are more likely to be discouraged from applying for new financing, due to higher application costs and expected rejection. Our main results are robust to several sensitivity checks, including accounting for potential endogeneity. Furthermore, we show that the observed self-rationing mechanism is rather inefficient, suggesting that financial knowledge might play a key role in reducing credit market imperfections. |
| Date: | 2024–05 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2405.05891 |
| By: | Henide, Karim; Ahmar, Zaryab |
| Abstract: | The underlying literature hypothesises and provides randomised evidence for the positive impact of promoting the broad-based inclusion, empowerment, and representation of women on regional ecosystems. This study seeks to isolate a female agency-driven development factor in external sovereign emerging market debt and finds evidence for superior risk-adjusted returns from tilting towards female agency leaders. We propose the female agency factor as an additional scope in the modern investor’s toolbox of holistic credit assessment, allowing investors to isolate the issuers which are the most effective sovereign transmission mechanisms of sustainable development capital. This contribution to the corpus supports the notion of integrating sustainability factors into portfolio construction and reinforces the argument for supporting female-led development from a financial markets’ perspective. |
| Keywords: | sustainability; female agency; sovereign; fixed income; emerging markets |
| JEL: | E6 J1 |
| Date: | 2023–11–21 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:123430 |