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

Table 6.26. Determinants of Loan Denial Rates—ENC
African American
Asian/Pacific Islander
Hispanic
Native and Other
Nonminority female
African American*ENC
Asian/Pacific Islander*ENC
Hispanic-Other*ENC
Native-Other*ENC
Nonminority female*ENC
ENC division
Statistical Disparities in Capital Markets
(1) (2) (3) (4) (5)
0.522 0.174 0.134 0.122 0.126
(8.45) (5.66) (4.92) (5.23) (5.13)
0.071 0.022 0.011 0.003 0.001
(1.79) (1.70) (1.14) (0.68) (0.34)
0.090 0.014 0.009 0.004 0.003
(2.08) (1.25) (1.04) (0.82) (0.74)
0.187 0.062 0.034 0.024 0.022
(2.22) (2.01) (1.55) (1.55) (1.59)
0.061 0.006 0.004 0.003 0.003
(2.74) (1.19) (0.95) (1.13) (1.33)
-0.063 -0.011 -0.008 -0.004 -0.003
(1.92) (1.68) (1.44) (1.58) (1.51)
0.000 0.000 0.000 0.000 0.000
(0.00) (0.00) (0.00) (0.00) (0.00)
0.000 0.000 0.000 0.000 0.000
(0.00) (0.00) (0.00) (0.00) (0.00)
0.000 0.000 0.000 0.000 0.000
(0.00) (0.00) (0.00) (0.00) (0.00)
0.000 0.000 0.000 0.000 0.000
(0.00) (0.00) (0.00) (0.00) (0.00)
0.004 -0.000 0.000 -0.001 -0.002
(0.19) (0.09) (0.03) (0.20) (0.58)
Creditworthiness (4 variables) No Yes Yes Yes Yes
Dun & Bradstreet credit ratings (4 variables) No Yes Yes Yes Yes
Balance Sheet (4 indicator variables) No Yes Yes Yes Yes
Owner Experience (1 indicator variable) No Yes Yes Yes Yes
Owner’s Share of Business (1 indicator variable) No Yes Yes Yes Yes
Owner’s Education (6 indicator variables) No Yes Yes Yes Yes
Other Firm Characteristics (17 variables) No No Yes Yes Yes
Characteristics of the Loan (1 variable) No No Yes Yes Yes
Geographic Division (7 indicator variables) No No No Yes Yes
Industry (8 indicator variables) No No No Yes Yes
Year of Application (5 indicator variables) No No No No Yes
Type of Financial Institution (11 indicator vars.) No No No No Yes
N 1,618 1,609 1,609 1,609 1,559
Pseudo R 2 0.0939 0.2344 0.2966 0.3389 0.3736
Chi 2 81.27 197.80 250.24 285.90 312.32
Log likelihood -392.0 -323.0 -296.7 -278.9 -261.8
Source: See Table 6.24.
Notes: (1) t-statistics in parentheses. (2) Creditworthiness controls include presence of legal judgments against the
firm during the previous 3 years, more than 60 days delinquent on any personal obligations of the firm’s owner
during the previous 3 years, more than 60 days delinquent on any business obligations of the firm during the
previous 3 years, and declaration of owner of firm bankruptcy during the previous 7 years. (3) Balance sheet
variables include firm sales in 1998, firm equity in 1998, owner’s home equity in 1998, and owner’s personal net
worth (exclusive of firm equity and home equity) in 1998. (4) For other variables, see notes for Table 6.25.
NERA Economic Consulting 228