Just how do experienced lenders make decisions? That dissertation details this query by researching judgment and decision-making habits of loan authorities in banks along with credit managers in supplying firms. The dissertation does apply an incorporated economic-psychological perspective and comprises of seven parts: a detailed novels evaluate and six individual scientific articles. Researched locations are analysis on judgment and decision-making (JDM), research on expert decision-makers, and preceding scientific operate on experienced lenders. The six reports highlight: (1) likable personal features of expert credit analysts; (2) the usage of software to monitor JDM actions; (3) variations between novices’ and encountered loan officers’ JDM actions; (4) the interactions among details acquisition, chance attitude, and experience; (5) behaviours in direction of credit decision support methods; and (6) attitudes towards seeking collateral. Employed strategies were in-depth interviews, a nation-wide survey, and also a computer-based experiment. Overall, the scientific discoveries give an ambiguous image of the alleged efficiency of encountered lenders’ judgment and decision-making behavior. On the other hand, experienced creditors appear to be capable, careful, and aware about their duty. On the flip side, they have a tendency to argue and create contrary judgments and decisions….
Contents: Expertise in credit granting: studies on judgment and decision-making behavior
INTRODUCTION
Background
Research Perspective
Research Scope
Organization of the Dissertation
CREDIT GRANTING: AN OVERVIEW AND A DESCRIPTION
Some Distinctions between Bank Loan and Trade Credit
The Notion of Credit Assessment
Information Involved in the Credit Assessment
Accounting Information
Critique of Accounting Information
Non-Accounting Information
Return and Risk Associated with Credit Granting
The Return of Lending
The Risk of Lending
Descriptions of the Procedure for a Credit Application
The Typical Case of a Loan Proposition
The Typical Case of a Trade Credit Application
An Economic-Theoretical Perspective on Credit Granting
A Psychological Perspective on Credit Granting
The Interaction between the Loan Officer and the Entrepreneur
The Decision-Making by the Credit Committee
Summary
AN OVERVIEW OF RESEARCH ON JUDGMENT
AND DECISION-MAKING
The Interdisciplinary Research Area of Judgment and Decision-Making.
Dimensions OfResearch on Judgment and Decision-Making
Two Research Strands within Judgment and Decision-Making Research
The Choice Strand
The Judgment Strand
A Structural Perspective when Studying Judgment and Decision-Making
Judgment Analyses
Critique of the Structural Perspective
Process-Tracing Methods
Verbal Protocols
Information Board Techniques
Eye Tracking
A Process Perspective when Studying Judgment and Decision-Making
Acquisition of Information
Evaluation ofInfonnation
Two Examples of Process-Oriented Judgment and Decision-Making Research
Summary
A REVIEW OF RESEARCH ON EXPERT DECISION-MAKERS
The Concept of Expertise
Two Strands ofResearch on Expert Decision-Makers
The Behavioral View on Expertise
The Cognitive View on Expertise
Behavioral Studies on Expert Decision-Makers
Cognitive Studies on Expert Decision-Makers
Some Explanations of the Process-Performance Paradox
Experimental Flaws
Task Characteristics
Use of Configural Rules
Inadequate Learning
Summary
A REVIEW OF RESEARCH ON EXPERIENCED LENDERS
Literature Review
Selected Studies
Categorizing the Selected Studies
Implications of the Reviewed Studies
Other Relevant Studies 011 Professional Judges in Lending
Credit Evaluation Process
Multiple Decision-Makers
Summary
SUMMARY OF THE STUDIES
Study 1. Personal Attributes of Expert Credit Analysts
Study 2. Pl198: Software for Tracing Decision Behavior
in Lending to Small Businesses
in Lending to Small Businesses
Study 3. Does Experience Matter in Lending? A Process-
Tracing Study on Experienced Loan Officers’ and Novices’ Decision Behavior
Study 4. Risk Attitude and Acquisition of Information in
Credit Risk Assessment: A Survey among Credit Managers
in Swedish Supplying Companies
Study 5. Business Decisions Aided by Information Technology:
A Survey Study ofAttitudes towards Decision Support Systems
by Credit Managers in Swedish Supplying Companies
Study 6. Collateral in Lending: Attitudes, Intentions, and Behavior…
Expertise in credit granting: studies on judgment and decision-making behavior
Source: Stockholm School of Economics
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