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Does marriage equality promote credit access? Evidence from same-sex marriage laws

Research output: Contribution to journalArticlepeer-review

Original languageEnglish
Article number102315
JournalJournal of Corporate Finance
Volume77
Early online date15 Nov 2022
DOIs
Accepted/In press24 Oct 2022
E-pub ahead of print15 Nov 2022
PublishedDec 2022

Bibliographical note

Publisher Copyright: © 2022 The Authors

King's Authors

Abstract

We show that following the legalization of same-sex marriage across US states, mortgage applications from same-sex borrowers are more likely to be denied relative to a matched sample of different-sex borrowers. Our findings are robust to using a stacked regression design and several approaches to account for compositional changes in the pool of mortgage applicants around same-sex legalization. FinTech lenders, which rely less on human loan officers, experience no change in the denial gap. Our results highlight information frictions between loan officers and same-sex borrowers as one channel for the increased denial gap between same-sex and different-sex applications.

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