The State of Minority- and Women- Owned ... - Cleveland.com

Statistical Disparities in Capital Markets
African Americans and Hispanics, the difference is 46 and 36 percentage points, respectively.
For Asians/Pacific Islanders, the difference is 19 percentage points, and for nonminority females,
8 percentage points.
Table 6.20. More Loan Denial Probabilities
African American
Asian/Pacific Islander
Hispanic
Nonminority female
African American*ENC
Asian/Pacific Islander*ENC
Hispanic*ENC
Nonminority female*ENC
ENC
(1) (2) (3) (4)
Denylast Denylast Denylast Denylast
0.457
(8)
0.185
(2.81)
0.360
(6.28)
0.083
(2)
0.246
(4.76)
0.027
(0.65)
0.171
(3.67)
0.005
(0.20)
0.447
(7.47)
0.200
(2.90)
0.353
(6.06)
0.076
(1.79)
0.043
(0.28)
0.000
(0.00)
0.000
(0.00)
0.008
(0.05)
-0.058
(1.17)
0.257
(4.63)
0.031
(0.72)
0.182
(3.75)
0.006
(0.20)
-0.037
(0.47)
0.000
(0.00)
0.000
(0.00)
0.025
(0.20)
-0.041
(0.88)
Creditworthiness Controls No Yes No Yes
Owner’s Education No Yes No Yes
Other Firm Characteristics No Yes No Yes
Characteristics of the Loan No Yes No Yes
Geographic Division No Yes No Yes
Industry No Yes No Yes
N 846 846 841 841
Pseudo R 2
0.1112 0.4265 0.1155 0.4265
Chi 2
90.94 348.71 94.17 347.85
Log likelihood -363.3 -234.5 -360.7 -233.8
Source: See Table 6.18.
Results consistent with discrimination are confirmed for African American-owned firms and
Hispanic-owned firms in Column (2) of Table 6.20 when a host of demographic and financial
characteristics and geographic and industry indicators are included. When interaction terms for
the ENC division are added to the model as in Columns (3) and (4), results for African
Americans and Hispanics remain statistically significant. Moreover, the results for Asian/Pacific
Islander-owned firms and nonminority female-owned firms become significant in Column (3),
NERA Economic Consulting 220