nach oben

Journal of Business Ethics

Erschienen in:

15.01.2015

Making Loan Decisions in Banks: Straight from the Gut?

verfasst von: Fiona Wilson

Erschienen in: Journal of Business Ethics | Ausgabe 1/2016

Einloggen

Aktivieren Sie unsere intelligente Suche, um passende Fachinhalte oder Patente zu finden.

search-config

KI-gestützte Suche

Aus

Abstract

When a business owner approaches a bank for a loan for their business they might hope that a well-established bureaucratic procedure would ensure that their application was processed with stipulated rules and impersonal criteria. They might expect that two bank officials, evaluating the same proposal for a loan, would reach the same decision. However, research shows that both quantifiable data and “gut feelings” are used in the decision. In this research, analysis of interviews with senior managers, and both individual and focus group interviews with bank loan officers, reveals that there are no set criteria or stipulated rules. The interviews demonstrate how and why nonquantifiable data is used, and why different bank officials can reach different conclusions on the same loan proposal. While these bank loan officers do not appear to be discriminatory against female business owners, the lending criteria and process allows significant room for discrimination. It appears questionable whether bank lending is seen as an ethical and fair process.

Vorheriger Artikel Managing Institutional Complexity: A Longitudinal Study of Legitimacy Strategies at a Sportswear Brand Company

Nächster Artikel Corporate Social Responsibility and Multi-Stakeholder Governance: Pluralism, Feminist Perspectives and Women’s NGOs

Sie haben noch keine Lizenz? Dann Informieren Sie sich jetzt über unsere Produkte:

Springer Professional "Wirtschaft+Technik"

Online-Abonnement

Mit Springer Professional "Wirtschaft+Technik" erhalten Sie Zugriff auf:

über 102.000 Bücher
über 537 Zeitschriften

aus folgenden Fachgebieten:

Automobil + Motoren
Bauwesen + Immobilien
Business IT + Informatik
Elektrotechnik + Elektronik
Energie + Nachhaltigkeit
Finance + Banking
Management + Führung
Marketing + Vertrieb
Maschinenbau + Werkstoffe
Versicherung + Risiko

Jetzt Wissensvorsprung sichern!

Jetzt informieren

Springer Professional "Wirtschaft"

Online-Abonnement

Mit Springer Professional "Wirtschaft" erhalten Sie Zugriff auf:

über 67.000 Bücher
über 340 Zeitschriften

aus folgenden Fachgebieten:

Bauwesen + Immobilien
Business IT + Informatik
Finance + Banking
Management + Führung
Marketing + Vertrieb
Versicherung + Risiko

Jetzt Wissensvorsprung sichern!

Jetzt informieren

Alesini, A., Lotti, F., & Mistrulli, P. E. (2008). Do women pay more for credit? Evidence from Italy, Working Paper, NBER.

Bellucci, A., Borisov, A., and Zazzao, A. (2010a) Do male and female loan officers differ in small business lending? A review of the literature, MOFIR Working Paper no 47, November.

Bellucci, a, Borisov, A., & Zazzao, A. (2010b). Does gender matter in bank-firm relationships? Evidence from small business lending. Journal of Banking and Finance, 34, 2968–2984.CrossRef

Bendix, R. (1966). Max Weber: An intellectual portrait. Methuen: University Paperbacks.

Berger, A. N., & Udell, G. G. F. (1998). The economics of small business finance: the role of private equity and debt markets in the financial growth cycle. Journal of Banking & Finance, 22(6–8), 613–673.CrossRef

Bonabeau, E. (2003). Don’t trust your gut. Harvard Business Review, 5, 116–123.

Buttner, E. H., & Rosen, B. (1988). Bank loan officers’ perceptions of the characteristics of men, women, and successful entrepreneurs. Journal of Business Venturing, 3, 249–258.CrossRef

Buttner, E. H., & Rosen, B. (1992). Rejection in the loan application process; male and female entrepreneurs’ perception and subsequent intentions. Journal of Small Business Management, 30, 58–65.

Carter, S., Shaw, E., Lam, W., & Wilson, F. (2007). Gender, entrepreneurship and bank lending: the criteria and processes used by bank loan officers in assessing applications. Entrepreneurship, Theory and Practice, 31, 427–444.CrossRef

Cole, R., Goldberg, L., & White, L. (2004). Cookie cutter vs. character: the micro structure of small business lending by large and small banks. Journal of Financial and Quantitative Analysis, 39, 227–251.CrossRef

Cole, B. C., & Smith, D. L. (1996). Perceptions of business ethics: Students vs. business people. Journal of Business Ethics, 15(8), 889–896.CrossRef

Coleman, S. (2000). Access to capital and terms of credit: a comparison of men and women-owned small business. Journal of Small Business Management, 38, 37–52.

Coleman, S. (2002). Characteristics and borrowing behaviour or small women-owned firms: evidence from the 1998 survey of small business finances. Journal of Business and Entrepreneurship, 14(2), 151–166.

Coleman, S., & Robb, A. (2009). A comparison of new firm financing by gender: Evidence from the Kauffman Firm Survey data. Small Business Economics, 33, 397–411.

Courpasson, D., & Clegg, S. (2006). Dissolving the iron cages: Tocqueville, Michels, bureaucracy and the perpetuation of elite power. Organization, 13, 319–343.CrossRef

Dalton, D., & Ortegren, M. (2011). Gender differences in ethics research: the importance of controlling for the social desirability response bias. Journal of Business Ethics, 103, 73–93.CrossRef

Danos, P., Holt, D. L., & Imhoff, E. A. (1989). The use of accounting information in bank lending decisions. Accounting, Organizations and Society, 14(3), 235–246.CrossRef

Dawson, L. M. (1997). Ethical differences between men and women in the sales profession. Journal of Business Ethics, 16(11), 1143–1152.CrossRef

Deakins, D., & Hussain, G. (1994). Risk assessment and asymmetric information. Journal of Bank Marketing, 12(1), 24–31.CrossRef

Deshpande, S. P., Joseph, J., & Prasad, R. (2006). Factors impacting on ethical behaviour in hospitals. Journal of Business Ethics, 69, 207–216.CrossRef

Ekanem, I., & Smallbone, D. (2007). Learning in small firms: The case of investment decision making behaviour. International Small Business Journal, 25(2), 107–129.CrossRef

Equality and Human Rights Commission (2009) Employment and earnings in the finance sector: A gender analysis. Equality and Human Rights Commission.

Fabowale, L., Orser, B., & Riding, A. (1995). Gender, structural factors, and credit terms between Canadian small businesses and financial institutions. Entrepreneurship, Theory and Practice, Summer, 41–65.

Fay, M., & Williams, L. (1993). Gender bias and the availability of business loans. Journal of Business Venturing, 8, 363–376.CrossRef

Federation of Small Businesses (FSB) (2012). Entrepreneurship Inquiry will tackle access to finance to small firms, FSB News Release, 8th February.

Fletcher, M. (1995). Decision making by Scottish bank managers. International Journal of Entrepreneurial Behavior and Research, 1(2), 37–53.CrossRef

Fraser, S. (2004). Finance for small and medium-sized enterprises: A report on the 2004 UK survey of SME finances. Warwick: Centre for Small and Medium Sized Enterprises, Warwick Business School.

Freel, M., Carter, S., Tagg, S., & Mason, C. (2010). The latent demand for bank debt: characterizing “discouraged borrowers”. Small Business Economics, 38(4), 399–418.

Gladwell, M. (2005). Blink: the power of thinking without thinking. London: Penguin Books.

Hashimzade, N., & Rodionova, Y. (2013). Gender bias in access to finance, occupational choice and business performance. Economic Papers, Department of Economics, University of Reading

Hisrich, R. D., & Brush, C. (1984). The woman entrepreneur, management skills and business problems. Journal of Small Business Management, 22, 30–37.

Hisrich, R., & Brush, C. G. (1986). The woman entrepreneur. Lexington MA: Lexington Books.

Hisrich, R. D., & O’Brien, M. (1982) The woman entrepreneur as a reflection of the type of business. In K. H. Vesper (Ed.), Frontiers of entrepreneurship research (pp. 54–67). Boston, MA: Babson college.

Institute of Leadership and Management (2012). Women in banking. London: Institute of Leadership and Management. https://www.i-l-m.com/~/media/ILM%20Website/Downloads/Insight/Reports_from_ILM_website/Research_womeninbanking_march12%20pdf.ashx.

Jankowicz, A. D., & Hisrich, R. D. (1987). Intuition in small business lending decisions. Journal of Small Business Management, 25, 45–52.

Kon, Y., & storey, D. J. (2003). A theory of discouraged borrowers. Small Business Economics, 21, 37–49.CrossRef

Kryzanowski, L., & Bertin-Boussu, E. (1984). Equal access to credit: Lender’s attitudes toward an applicant’s sex and marital status. International Journal of Woman’s Studies, 4(3), 13–23.

Lipshitz, R., & Shulimovitz, N. (2007). Intuition and emotion in bank loan officers’ credit decisions. Journal of Cognitive Engineering and Decision Making, 1, 212–233.CrossRef

Mason, C., & Rogers, A. (1997). The business angel’s investment decision: An exploratory analysis. In D. Deakins, P. Jennings, & C. Mason (Eds.), Entrepreneurship in the 1990s (pp. 29–46). London: Paul Chapman Publishing.

Mason, C., & Stark, M. (2004). What do investors look for in a business plan? A comparison of the investment criteria of bankers, venture capitalists and business angels. International Small Business Journal, 22(3), 227–246.CrossRef

Masterton, V. (2005). Learning to love debt, big fish. Bank of Scotland, Issue 5, Spring.

McNamara, G., & Bromiley, P. (1997). Decision making in an organizational setting: cognitive and organizational influences on risk assessment in commercial lending. Academy of Management Journal, 40(5), 1063–1088.CrossRef

Mitchell, W. J., Lewis, P. V., & Reinsch, N. L. (1992). Bank ethics: An exploratory study of ethical behaviours and perceptions in small, local banks. Journal of Business Ethics, 11, 197–205.CrossRef

O’Fallon, M. J., & Butterfield, K. D. (2005). A Review of the empirical ethical decision-making literature 1996–2003. Journal of Business Ethics, 59, 375–413.CrossRef

Orser, B., Riding, A., & Manley, K. (2006). Women entrepreneurs and financial capital. Entrepreneurship, Theory and Practice, 30, 643–665.CrossRef

Read, L. (1994). Raising bank finance: A comparative study of the experiences of male and female business owners. Venture Finance Working Paper, 11, November. Dept of Geography, University of Southampton, Southampton.

Robb, A., & Wolken, J. (2005). Firm, owner and financing characteristics: differences between female and male owned businesses. Working paper presented at the University of North Carolina Boot Camp on Women and Minority Entrepreneurship Research, August.

Saparito, P., Elam, A., & Brush, C. (2012). Bank-firm relationships: do perceptions vary by gender? Entrepreneurship, Theory and Practice, 37(4), 837–858.

Schminke, M. (1997). Gender differences in ethical frameworks and evaluation of others, choices in ethical dilemmas. Journal of Business Ethics, 16(1), 55–65.CrossRef

Sikula, A., & Costa, A. D. (1994). Are women more ethical than men? Journal of Business Ethics, 13(11), 859–871.CrossRef

Still, L., & Guerin, C. D. (1991). Barriers facing self-employed women: The Australian experience. Women in Management Review and Abstracts, 6(6), 3–8.

Storey, D. J. (1994). New firm growth and bank financing. Small Business Economics, 6(2), 139–150.CrossRef

Treanor, J. (2013). HSBC chief bemoans lack of women among banking elite, Guardian. Friday 8th November. Found at www.theguardian.com/business/2013/no/08/hsbc-stuart-gulliver-women-in-banking.

Treichel, M. Z., & Scott, J. A. (2006). Women-owned businesses and access to bank credit: Evidence from three surveys since 1987. Venture Capital, 8(1), 51–67.CrossRef

Tsalikis, J., & Ortiz-Buonafina, M. (1990). Ethical beliefs. Differences of males and females. Journal of Business Ethics, 9, 509–518.CrossRef

Weber, M. (1948). Bureaucracy. Chapter VIII (H. H. Gerth, Ed., C. Wright Mills, Trans.). From Max Weber: essays in Sociology, pp. 196–244 published as 1991 edition, London: Routledge.

Welch, J. (2001). In John A. Byrne (Ed.), Straight from the Gut. New York: Warner Business Books.

Titel: Making Loan Decisions in Banks: Straight from the Gut?
verfasst von: Fiona Wilson
Publikationsdatum: 15.01.2015
Verlag: Springer Netherlands
Erschienen in: Journal of Business Ethics / Ausgabe 1/2016
Print ISSN: 0167-4544
Elektronische ISSN: 1573-0697
DOI: https://doi.org/10.1007/s10551-014-2515-y

Springer Professional

Abstract

Bitte loggen Sie sich ein, um Zugang zu Ihrer Lizenz zu erhalten.

Sie haben noch keine Lizenz? Dann Informieren Sie sich jetzt über unsere Produkte:

Springer Professional "Wirtschaft+Technik"

Springer Professional "Wirtschaft"

Weitere Artikel der Ausgabe 1/2016

Managing Institutional Complexity: A Longitudinal Study of Legitimacy Strategies at a Sportswear Brand Company

Corporate Social Responsibility and Multi-Stakeholder Governance: Pluralism, Feminist Perspectives and Women’s NGOs

CSR-Washing is Rare: A Conceptual Framework, Literature Review, and Critique

Gender Diversity in the Governance of Sport Associations: The Sydney Scoreboard Global Index of Participation

Eco-labeled Products: Trend or Tools for Sustainability Strategies?

Wisdom and the Tragic Question: Moral Learning and Emotional Perception in Leadership and Organisations

Premium Partner