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Formal finance and household enterprise performance in Ghana: The gender dimension

In this study, we empirically examine the gender dimension of the effect of formal finance on enterprise performance. While the literature suggests that formal finance, in general, improves firm performance, this effect may differ across firms headed by male and female entrepreneurs since the latter...

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Detalles Bibliográficos
Autores principales: Peng, Yiqing, Adjasi, Charles Komla Delali
Formato: Online Artículo Texto
Lenguaje:English
Publicado: Frontiers Media S.A. 2022
Materias:
Acceso en línea:https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9561877/
https://www.ncbi.nlm.nih.gov/pubmed/36248599
http://dx.doi.org/10.3389/fpsyg.2022.887545
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author Peng, Yiqing
Adjasi, Charles Komla Delali
author_facet Peng, Yiqing
Adjasi, Charles Komla Delali
author_sort Peng, Yiqing
collection PubMed
description In this study, we empirically examine the gender dimension of the effect of formal finance on enterprise performance. While the literature suggests that formal finance, in general, improves firm performance, this effect may differ across firms headed by male and female entrepreneurs since the latter are faced with more severe social, economic, and financial constraints, which undermine their firm performance. Consequently, the effect of finance on firm performance is expected to be weaker in female-headed enterprises. So far, there is little evidence as to whether a gender gap exists regarding the effect of formal finance on firm performance, especially among small household enterprises. To fill the gap in the literature, we use the Ghana Living Standards Survey 2016/2017 and study the effect of formal credit on the productivity of male-headed and female-headed non-farm household enterprises in Ghana. Our results show that a positive effect of formal credit on labor productivity is only found in male-headed enterprises, but not in female-headed ones. We suspect that this result may be explained by women’s relatively less endowment in conditional factors, such as skills, knowledge, experiences, and capabilities.
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spelling pubmed-95618772022-10-15 Formal finance and household enterprise performance in Ghana: The gender dimension Peng, Yiqing Adjasi, Charles Komla Delali Front Psychol Psychology In this study, we empirically examine the gender dimension of the effect of formal finance on enterprise performance. While the literature suggests that formal finance, in general, improves firm performance, this effect may differ across firms headed by male and female entrepreneurs since the latter are faced with more severe social, economic, and financial constraints, which undermine their firm performance. Consequently, the effect of finance on firm performance is expected to be weaker in female-headed enterprises. So far, there is little evidence as to whether a gender gap exists regarding the effect of formal finance on firm performance, especially among small household enterprises. To fill the gap in the literature, we use the Ghana Living Standards Survey 2016/2017 and study the effect of formal credit on the productivity of male-headed and female-headed non-farm household enterprises in Ghana. Our results show that a positive effect of formal credit on labor productivity is only found in male-headed enterprises, but not in female-headed ones. We suspect that this result may be explained by women’s relatively less endowment in conditional factors, such as skills, knowledge, experiences, and capabilities. Frontiers Media S.A. 2022-09-30 /pmc/articles/PMC9561877/ /pubmed/36248599 http://dx.doi.org/10.3389/fpsyg.2022.887545 Text en Copyright © 2022 Peng and Adjasi. https://creativecommons.org/licenses/by/4.0/This is an open-access article distributed under the terms of the Creative Commons Attribution License (CC BY). The use, distribution or reproduction in other forums is permitted, provided the original author(s) and the copyright owner(s) are credited and that the original publication in this journal is cited, in accordance with accepted academic practice. No use, distribution or reproduction is permitted which does not comply with these terms.
spellingShingle Psychology
Peng, Yiqing
Adjasi, Charles Komla Delali
Formal finance and household enterprise performance in Ghana: The gender dimension
title Formal finance and household enterprise performance in Ghana: The gender dimension
title_full Formal finance and household enterprise performance in Ghana: The gender dimension
title_fullStr Formal finance and household enterprise performance in Ghana: The gender dimension
title_full_unstemmed Formal finance and household enterprise performance in Ghana: The gender dimension
title_short Formal finance and household enterprise performance in Ghana: The gender dimension
title_sort formal finance and household enterprise performance in ghana: the gender dimension
topic Psychology
url https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9561877/
https://www.ncbi.nlm.nih.gov/pubmed/36248599
http://dx.doi.org/10.3389/fpsyg.2022.887545
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