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

Table 6.28. Models of Credit Card Use
Specification
1) Business Credit
Card
2) Personal Credit
Card
3) Business Credit
Card, ENC
4) Personal Credit
Card, ENC
Source: See Table 6.24.
African
American
-0.060
(1.13)
-0.132
(2.68)
0.211
(1.44)
-0.220
(1.55)
Asian/
Pacific
Islander
0.040
(0.91)
0.036
(0.84)
-0.034
(0.20)
0.111
(0.76)
Hispanic
0.004
(0.08)
-0.080
(1.77)
0.105
(0.75)
-0.004
(0.03)
Statistical Disparities in Capital Markets
Native
American
and Other
-0.001
(0.01)
-0.040
(0.48)
Nonminority
Female
0.002
(0.07)
0.036
(1.56)
Sample
Size
NERA Economic Consulting 230
–
-0.092
(0.39)
-0.127
(0.44)
0.101
(1.55)
Notes: (1) Each line of this table represents a separate regression with the same control variables as Column 5 of
Table 6.27, except for loan amount, year of application, and type of lender. (2) The dependent variable indicates
whether the firm used business or personal credit cards to finance business expenses. (3) In all specifications, the
sample size is all firms. (4) Reported estimates are Probit derivatives with t-statistics in parentheses.
Finally, consistent with earlier results, Table 6.29 (comparable to Tables 6.15 for 1993 and 6.22
for 1998) shows that African American owners are much more likely not to apply for a loan
fearing they will be denied. Even after controlling for a host of demographic, financial,
geographic, and industry factors, African American business owners are still almost 17
percentage points more likely to fail to apply for loans for fear of denial—even though they need
the credit. In the ENC the phenomenon is evident as well—African American business owners
are 17 percentage points more likely to fail to apply for fear of denial. In construction and related
industries, the trend is even more pronounced at 30 percentage points. There is evidence of this
phenomenon for nonminority female business owners as well in the nation as a whole and to a
lesser extent in the ENC.
3,676
3,676
557
562