1,598
Views
0
CrossRef citations to date
0
Altmetric
GENERAL & APPLIED ECONOMICS

Religion, caste and access to credit by SMEs: Is there a link?

ORCID Icon
Article: 2160126 | Received 14 Mar 2022, Accepted 14 Dec 2022, Published online: 21 Dec 2022

References

  • Adhikari, B. K., & Agrawal, A. (2016). Does local religiosity matter for bank risk-taking? Journal of Corporate Finance, 38, 272–23. https://doi.org/10.1016/j.jcorpfin.2016.01.009
  • Ahmed, I. (1979). Caste and Social Stratification among Muslims in India (IInd Ed.). Manohar Book Service.
  • Alesina, A., Devleeschauwer, A., Easterly, W., Kurlat, S., & Wacziarg, R. (2003). Fractionalisation. Journal of Economic Growth, 8(2), 155–194. https://doi.org/10.1023/A:1024471506938
  • Alesina, A., Lotti, F., & Mistrulli, P. (2013). Do women pay more for credit? Evidence from Italy. Journal of the European Economic Association, 11, 45–66. https://doi.org/10.1111/j.1542-4774.2012.01100.x
  • Alharbi, R. K., Yahya, S. B., & Kassim, S. (2021). Impact of religiosity and branding on SME performance: Does financial literacy play a role? Journal of Islamic Marketing. https://doi.org/10.1108/JIMA-08-2019-0162
  • Ali, I., Akhter, W., Ashraf, N., & Elgammal, M. M. (2017). Impact of Muslim holy days on Asian stock markets: An empirical evidence. Cogent Economics and Finance, 5(1311096), 1311096. https://doi.org/10.1080/23322039.2017.1311096
  • Al-Maliki, H. S., Salehi, M., & Kardan, B. (2022). The effect of Covid-19 on risk-taking of small and medium-sized family and non-family firms. Journal of Facilities Management. https://doi.org/10.1108/JFM-09-2021-0105
  • Aterido, R., Beck, T., & Iacovone, L. (2013). Access to finance in sub-Saharan Africa: Is there a gender gap? World Development, 47, 102–120. https://doi.org/10.1016/j.worlddev.2013.02.013
  • Athaide, M., & Pradhan, H. K. (2020). A model of credit constraints for SMEs in India. Small Business Economics, 55(4), 1159–1177. https://doi.org/10.1007/s11187-019-00167-4
  • Audretsch, D. B., Boente, W., & Tamvada, J. P. (2013). Religion, social class, and entrepreneurial choice. Journal of Business Venturing, 28(6), 774–789. https://doi.org/10.1016/j.jbusvent.2013.06.002
  • Audretsch, D. B., & Tamvada, J. P. (2008). The distribution of firm startup size across geographic space. CEPR Discussion Paper No. 6846. CEPR: London.
  • Ayyagari, M., Beck, T., & Demirgüç-Kunt, A. (2007). Small and medium enterprises across the globe. Small Business Economics, 29(4), 415–434. https://doi.org/10.1007/s11187-006-9002-5
  • Ayyagari, M., Demirguc-Kunt, A., & Maksimovic, V. (2008). How important are financing constraints? The role of finance in the business environment. World Bank Economic Review, 22(3), 483–516. https://doi.org/10.1093/wber/lhn018
  • Banerjee, A., & Munshi, K. (2004). How efficiently is capital allocated? Evidence from the knitted garment industry in Tirupur. Review of Economic Studies, 71(1), 19–42. https://doi.org/10.1111/0034-6527.00274
  • Barro, R., & McCleary, R. (2003). Religion and economic growth. NBER Working Paper No. 9682. Cambridge: MA.
  • Baydoun, N., Mamman, A., & Mohmand, A. (1999). The religious context of management practices: The case of Islamic religion, accounting, commerce and finance. Islamic Perspective Journal, 3, 59–79. https://researchers.cdu.edu.au/en/publications/the-religious-context-of-management-practices-the-case-of-the-isl
  • Beck, T., Behr, P., & Madestam, A. (2018). Sex and credit: Do gender interactions matter for credit market outcomes? Journal of Banking and Finance, 87, 380–396. https://doi.org/10.1016/j.jbankfin.2017.10.018
  • Beck, T., & Demirgüç-Kunt, A. (2006). Small and medium-size enterprises: Access to finance as a growth constraint. Journal of Banking and Finance, 30(11), 2931–2943. https://doi.org/10.1016/j.jbankfin.2006.05.009
  • Becker, G. (1971). The economics of discrimination. University of Chicago Press.
  • Berger, A. N., & Udell, G. F. (2006). A more complete conceptual framework for SME finance. Journal of Banking and Finance, 30(11), 2945–2966. https://doi.org/10.1016/j.jbankfin.2006.05.008
  • Bertrand, M., & Mullainathan, S. (2004). Are Emily and Greg more employable than Lakisha and Jamal: A field experiment on labor market discrimination. American Economic Review, 94(4), 991–1013. https://doi.org/10.1257/0002828042002561
  • Bhalotra, S., Irma Clots-Figueras, I., & Iyer, L. (2018). Pathbreakers? Women’s electoral success and future political participation. Economic Journal, 128(613), 1844–1878. https://doi.org/10.1111/ecoj.12492
  • Brancati, W. (2014). Innovative financing and the role of relationship lending for SMEs. Small Business Economics, 44, 449–473.
  • Cameron, A. C., & Trivedi, P. K. (2010). Microeconometrics Using Stata (Rev.) ed.). Stata Press.
  • Carbo-Valverde, S., Rodriguez-Fernandez, F., & Udell, G. F. (2008). Bank lending, financing constraints and SME investment Working Paper No. 4. Federal Reserve Bank of Chicago, ChicagoIL.
  • Carpenter, R. E., & Petersen, B. C. (2002). Is the growth of small firms constrained by internal finance? Review of Economics and Statistics, 84(2), 298–309. https://doi.org/10.1162/003465302317411541
  • Catholic Bishops’ Conference of India. (2016). Policy of Dalit Empowerment in the Catholic Church in India: An Ethical Imperative to Build Inclusive Communities. http://www.cbci.in/DownloadMat/dalit-policy.pdf
  • Chattopadhyay, R., & Duflo, E. (2004). Women as policy makers: Evidence from a randomised policy experiment in India. Econometrica, 72(5), 1409–1443. https://doi.org/10.1111/j.1468-0262.2004.00539.x
  • Chaudhuri, K., Sasidharan, S., Seethamma, R., & Rajesh, S. R. (2020). Gender, small firm ownership and credit access; Some insights from India. Small Business Economics, 54(4), 1165–1181. https://doi.org/10.1007/s11187-018-0124-3
  • Cooperatives Europe. (2020). A new SME strategy: For an inclusive SME strategy at EU level. Brussels (March 11). https://coopseurope.coop/sites/default/files/SME%20strategy_Position%20paper%20extended.pdf
  • Cotterill, S., Sidanius, J., Bhardwaj, A., & Kumar, V. (2014). Ideological support for the Indian caste system: Social dominance orientation, right-wing authoritarianism and karma. Journal of Social and Political Psychology, 2(1), 98–116. https://doi.org/10.5964/jspp.v2i1.171
  • Cowling, M. (2010). The role of loan guarantee schemes in alleviating credit rationing in the UK. Journal of Financial Stability, 6(1), 36–44. https://doi.org/10.1016/j.jfs.2009.05.007
  • De Andres, P., Gimeno, R., & de Cabo, R. M. (2021). The gender gap in bank credit access. Journal of Corporate Finance, 71, 101782. https://doi.org/10.1016/j.jcorpfin.2020.101782
  • de la Torre, A., Martínez Pería, M. S., & Schmukler, S. (2010). Bank involvement with SMEs: Beyond relationship lending. Journal of Banking and Finance, 34, 2280–2293. https://doi.org/10.1016/j.jbankfin.2010.02.014
  • Delechat, C., Newiak, M., Xu, R., Yang, F., & Aslan, G. (2018). What is driving women’s financial inclusion across countries? IMF Working Paper No. 38. IMF: Washington DC.
  • Delis, M., Hasan, I., Iosifidi, M., & Ongena, S. (2022). Gender, credit and firm outcomes. Journal of Financial and Quantitative Analysis, 57(1), 359–389. https://doi.org/10.1017/S0022109020000897
  • Deller, S. C., Conroy, T., & Markeson, B. (2018). Social capital, religion and small business activity. Journal of Economic Behavior and Organization, 155, 365–381. https://doi.org/10.1016/j.jebo.2018.09.006
  • Demirgüç-Kunt, A., Klapper, L., Singer, D., Ansar, S., & Hess, J. (2018). The Global Findex Database 2017: Measuring financial Inclusion and the Fintech Revolution. The World Bank.
  • Deshpande, A., & Sharma, S. (2013). Entrepreneurship or survival? Caste and gender of small business in India. Economic and Political Weekly, 48, 38–49.
  • Deshpande, A., & Sharma, S. (2016). Disadvantage and discrimination in self-employment: Caste gaps in earnings in Indian small business. Small Business Economics, 46(2), 325–346. https://doi.org/10.1007/s11187-015-9687-4
  • Drakopoulou, D. S., & Seaman, P. T. (1998). Religion and enterprise: An introductory exploration. Entrepreneurship: Theory and Practice, 23, 71–86. https://doi.org/10.1177/104225879802300104
  • Drydakis, N. (2010). Religious affiliation and employment bias in the labor market. Journal for the Scientific Study of Religion, 49(3), 477–493. https://doi.org/10.1111/j.1468-5906.2010.01523.x
  • Duarte, J., Siegel, S., & Young, L. (2012). Trust and credit: The role of appearance in peer-to-peer lending. Review of Financial Studies, 25(8), 2455–2484. https://doi.org/10.1093/rfs/hhs071
  • Du, X., & Zeng, Q. (2019). Bringing religion back in: Religious entrepreneurs, entrepreneurial gender and bank loans in Chinese family firms. Asian Review of Accounting, 27(4), 508–545. https://doi.org/10.1108/ARA-04-2018-0097
  • Galbraith, C., & Galbraith, D. (2007). An empirical note on entrepreneurial activity, intrinsic religiosity and economic growth. Journal of Enterprising Communities: People and Places in the Global Economy, 1, 188–201.
  • Gherghina, S. C., Botezatu, M. A., Hosszu, A., & Simionescu, L. N. (2020). Small and medium-sized enterprises (SMEs): The engine of economic growth through investments and innovation. Sustainability, 12(347), 347. https://doi.org/10.3390/su12010347
  • Ghosh, S. (2020). Access to and use of finance: Does religion matter? Indian Economic Review, 55(1), 67–92. https://doi.org/10.1007/s41775-020-00082-6
  • Ghosh, S. (2022a). Religiosity and bank performance: How strong is the link? Journal of Behavioral and Experimental Finance, 33(100600). https://doi.org/10.1016/j.jbef.2021.100600
  • Ghosh, S. (2022b). Political empowerment of women and financial inclusion: Is there a link? Social Science and Humanities Open, 5(100267). https://doi.org/10.1016/j.ssaho.2022.100267
  • Government of India. (2015). Religion Census 2011.
  • Government of India. (2016). Annual Report 2015-16. Ministry of Micro, Small and Medium Enterprises. :.
  • Granovetter, M. S. (1973). The strength of weak ties. American Journal of Sociology, 78(6), 1360–1380. https://doi.org/10.1086/225469
  • Guiso, L., Sapienza, P., & Zingales, L. (2006). Does culture affect economic outcomes? Journal of Economic Perspectives, 20(2), 23–48. https://doi.org/10.1257/jep.20.2.23
  • Gupta, D. (2005). Caste and politics: Identity over system. Annual Review of Anthropology, 34(1), 409–427. https://doi.org/10.1146/annurev.anthro.34.081804.120649
  • Henley, A. (2017). Does religion influence entrepreneurial behavior ? International Small Business Journal, 35(5), 1–21. https://doi.org/10.1177/0266242616656748
  • Hilary, G., & Hu, J. K. (2009). Does religion matter in corporate decision making in America? Journal of Financial Economics, 93(3), 455–473. https://doi.org/10.1016/j.jfineco.2008.10.001
  • Huang, W., Boateng, A., & Newman, A. (2016). Capital structure of Chinese listed SMEs: An agency theory perspective. Small Business Economics, 47(2), 535–550. https://doi.org/10.1007/s11187-016-9729-6
  • Huoy, C.-W., & Ali, R. (2017). Does a Muslim CEO matter in Shariah-compliant companies? Evidence from Malaysia. Pacific Basin Finance Journal, 42, 126–141. https://doi.org/10.1016/j.pacfin.2016.08.010
  • Iyer, L., Khanna, T., & Varshney, A. (2013). Caste and entrepreneurship in India. Economic and Political Weekly, 47(February), 52–60.
  • Iyer, L., Mani, A., Mishra, P., & Topalova, P. (2012). The power of political voice: Women’s political representation and crime in India. American Economic Journal: Applied Economics, 4, 165–193. https://doi.org/10.1257/app.4.4.165
  • Kanagaretnam, K., Lobo, G. J., & Wang, C. (2015). Religiosity and earnings management: International evidence from the banking industry. Journal of Business Ethics, 132(2), 277–296. https://doi.org/10.1007/s10551-014-2310-9
  • King, E. B., Shapiro, J., Hebl, M., Singletary, S., & Turner, S. (2006). The stigma of obesity in customer service: A mechanism for remediation and bottom-line consequences of interpersonal discrimination. Journal of Applied Psychology, 91(3), 579–593. https://doi.org/10.1037/0021-9010.91.3.579
  • Kumar, S. M. (2013). Does access to formal agricultural credit depend on caste? World Development, 43, 315–328. https://doi.org/10.1016/j.worlddev.2012.11.001
  • Kumar, A., Page, J. K., & Spalt, O. G. (2011). Religious beliefs, gambling attitudes, and financial market outcomes. Journal of Financial Economics, 102(3), 671–708. https://doi.org/10.1016/j.jfineco.2011.07.001
  • Kuntchev, V., Ramalho, R., Rodriguez-Meza, J., & Yang, J. S. (2013), What have we learned from the Enterprise Surveys regarding access to finance by SMEs? Policy Research Working Paper No. 6670. The World Bank: Washington DC.
  • Lewis, B. (2002). What went wrong? The clash between Islam and modernity in the Middle East. HarperCollins.
  • Madison, K., Moore, C. B., Daspit, J. J., & Nabisaalu, J. K. (2022). The influence of women on SME innovation in emerging markets. Strategic Entrepreneurship Journal, 16(2), 281–313. https://doi.org/10.1002/sej.1422
  • Matto, M., & Niskanen, M. (2019). Religion, national culture and cross-country differences in the use of trade credit: Evidence from European SMEs. International Journal of Managerial Finance, 15(3), 350–370. https://doi.org/10.1108/IJMF-06-2018-0172
  • Mazumdar, D., & Sarkar, S. (2008). Globalisation, Labor Markets and Inequality in India. Routledge.
  • McLeod, W. H. (1975). The Evolution of Sikh Community: Five Essays. Oxford University Press.
  • Michels, J. (2012). Do unverifiable disclosures matter? Evidence from peer-to-peer lending. Accounting Review, 87(4), 1385–1413. https://doi.org/10.2308/accr-50159
  • Mines, M. (1972). Muslim social stratification in India: The basis for variation. SouthWestern Journal of Anthropology, 28(4), 333–349. https://doi.org/10.1086/soutjanth.28.4.3629316
  • Muravyev, A., Talavera, O., & Schäfer, D. (2009). Entrepreneurs’ gender and financial constraints: Evidence from international data. Journal of Comparative Economics, 37(2), 270–286. https://doi.org/10.1016/j.jce.2008.12.001
  • Nguyen, T. V., Le, N. T. B., & Freeman, N. (2006). Trust and uncertainty: A study of bank lending to private SMEs in Vietnam. Asia Pacific Business Review, 12(4), 547–568. https://doi.org/10.1080/13602380600571260
  • Nikolova, E., & Simroth, D. (2015). Religious diversity and entrepreneurship in transition: Lessons for policymakers. IZA Journal of European Labor Studies, 4(1), 1–21. https://doi.org/10.1186/s40174-014-0028-4
  • North, D. C. (1991). Institutions. Journal of Economic Perspectives, 5(1), 97–112. https://doi.org/10.1257/jep.5.1.97
  • Nunziata, L., & Rocco, L. (2014). A tale of minorities: Evidence on religious ethics and entrepreneurship. Journal of Economic Growth, 21, 189–224.
  • Osei-Tutu, F., & Weill, L. (2021). Sex, language and financial inclusion. Economics of Transition and Institutional Change, 29(3), 369–403. https://doi.org/10.1111/ecot.12262
  • Pager, D., & Quillian, L. (2005). Walking the talk: What employers say versus what they do. American Sociological Review, 70(3), 355–380. https://doi.org/10.1177/000312240507000301
  • Parboteeah, K. P., Walter, S. G., & Block, J. H. (2015). When does Christian religion matter for entrepreneurial activity? The contingent effect of a country’s investments into knowledge. Journal of Business Ethics, 130(2), 447–465. https://doi.org/10.1007/s10551-014-2239-z
  • Pew Research Center. (2018). 5 facts about religion in India (June 29). Pew Research Centre.
  • Planning Commission. (2005). Micro finance and empowerment of scheduled caste women. In An Impact Study of SHGs in Uttar Pradesh and Uttaranchal. Government of India. New Delhi: Government of India.
  • Pratto, F., Liu, J. H., Levin, S., Sidanius, J., Shih, M., Bachrach, H., & Hegarty, P. (2000). Social dominance orientation and the legitimisation of inequality across cultures. Journal of Cross-Cultural Psychology, 31(3), 369–409. https://doi.org/10.1177/0022022100031003005
  • Presbitero, A. F., Rabellotti, R., & Piras, C. (2014). Barking up the wrong tree? Measuring gender gaps in firm’s access to finance. Journal of Development Studies, 50(10), 1430–1444. https://doi.org/10.1080/00220388.2014.940914
  • Puri, H. K. (2003). Scheduled castes in Sikh community: A historical perspective. Economic and Political Weekly, 38(June), 2693–2701.
  • Quartey, P., Turkson, E., Abor, J. Y., & Iddrisu, A. M. (2017). Financing the growth of SMEs in Africa: What are the constraints to SME financing within ECOWAS? Review of Development Finance, 7(1), 18–28. https://doi.org/10.1016/j.rdf.2017.03.001
  • Rajesh, S. N., & Sasidharan, S. (2018). Does the caste of the firm owner play a role in access to finance for small enterprises? Evidence from India. Developing Economies, 56(4), 267–296. https://doi.org/10.1111/deve.12183
  • Rajesh, R., & Sen, K. (2015). Finance constraints and firm transition in the informal sector: Evidence from Indian manufacturing. Oxford Development Studies, 43(1), 123–143. https://doi.org/10.1080/13600818.2014.972352
  • Rani, G. P., & Elliott, C. (2014). Disparities in earnings and education in India. Cogent Economics and Finance, 2(1), 941510. https://doi.org/10.1080/23322039.2014.941510
  • Reddy, S., & Jadhav, A. M. (2019). Gender diversity in boardrooms – A literature review. Cogent Economics and Finance, 7(1644703). https://doi.org/10.1080/23322039.2019.1644703
  • Religious Freedom and Business Foundation. (2021). Corporate Religious Equity, Diversity and Inclusion Index. USA.
  • Reserve Bank of India. (2009). Basic Statistical Returns of Banks 2008. RBI.
  • Reserve Bank of India. (2015). Report of the Committee on Medium-term Path on Financial Inclusion. Mumbai.
  • Reserve Bank of India. (2018). Handbook of Statistics on Indian States 2017-18. RBI.
  • Rietveld, C. A., & van Burg, E. (2014). Religious beliefs and entrepreneurship among Dutch Protestants. International Journal of Entrepreneurship and Small Business, 23(3), 279–295. https://doi.org/10.1504/IJESB.2014.065515
  • Robb, A. M., & Robinson, D. T. (2012). The capital structure decisions of new firms. Review of Financial Studies, 1, 1–27. https://doi.org/10.1093/rfs/hhs072
  • Sadeghloo, T., Qeidari, H. S., Salehi, M., & Jalali, A. F. (2018). Analysis of risk and return on investment of local entrepreneurs in Iran. Journal of Rural Development, 37(3), 539–564. https://doi.org/10.25175/jrd/2018/v37/i3/139523
  • Sidanius, J., & Pratto, F. (1999). Social Dominance: An Intergroup Theory of Social Hierarchy and Oppression. Cambridge University Press.
  • Thorat, S. (2005). Caste, social exclusion and poverty linkages: Concept, measurement and empirical evidence. In Concept Paper for PACS.
  • Thorat, S., & Neuman, K. S. (2012). Economic Discrimination Concept, Consequences and Remedies. In S. Thorat and K.S. Krieger (eds.) Blocked by caste: Economic discrimination in modern India (pp. 3-15). Oxford University Press.
  • Umar, U. H., Ado, M. B., & Ayuba, H. (2020). Is religion (interest) an impediment to Nigeria’s financial inclusion targets by the year 2020? A qualitative inquiry. Qualitative Research in Financial Markets, 12(3), 283–300. https://doi.org/10.1108/QRFM-01-2019-0010
  • Weber, M. (1930). The Protestant Ethic and the Spirit of Capitalism. Routledge.
  • Wellalage, N., & Locke, S. (2017). Access to credit in South Asia: Do women entrepreneurs face discrimination? Research in International Business and Finance, 41, 336–346. https://doi.org/10.1016/j.ribaf.2017.04.053
  • Williams, R. (2021). Adjusted predictions and marginal effects for multiple outcome models and commands. University of Notre Dame. Accessed at [https://www3.nd.edu/~rwilliam/stats3/Margins05.pdf]
  • Yoshino, N., & Taghizadeh-Hesary, F. (2018). The role of SMEs in Asia and their difficulties in accessing finance. ADBI Working Paper 911. Asian Development Bank Institute: Tokyo.
  • Zelekha, Y., Avnimelech, G., & Sharabi, E. (2014). Religious institutions and entrepreneurship. Small Business Economics, 42(4), 747–767. https://doi.org/10.1007/s11187-013-9496-6
  • Zingales, L. (2015). The cultural revolution in finance. Journal of Financial Economics, 117(1), 1–4. https://doi.org/10.1016/j.jfineco.2015.05.006