scholarly journals A Conceptual Framework for Bounded Rationality in Bank Officers’ Credit Decision for SME Lending in Malaysia

2021 ◽  
Vol 16 (3) ◽  
pp. 159-189
Author(s):  
Nigel Kollin Ondolos ◽  
◽  
Jasman Tuyon ◽  
Rozita Uji Mohammed ◽  
◽  
...  

Based on the Bounded Rational Theory, ideally, bank credit officers would be influenced by both rational (fundamental factors) and irrational (behavioural factors) in their credit assessment and decision making process. Emphasizing on the irrational decision making perspective, behavioural factors distort the credit decision making process in the banking industry. Despite such evidence, the psychology perspectives in bank lending practice has been given little attention in research and neglected in practice and policy perspectives. This conceptual research investigated the role of irrationality in bank lending decision making. The research design involved three stages. The research started with conceptualization of the bounded rational credit decision framework. This was designed based on review of three theories and related empirical evidence. In the second stage, constructs and their measurement items were sourced from prior work. Thereafter, a questionnaire was developed. In the third stage, the validity of the questionnaire was tested using expert validation, pre-test and pilot-test involving 30 credit officers working in business banking division of a Malaysian bank. Findings from the pilot study confirmed the validity of the questionnaire as an instrument that can be used for future empirical test. This bounded rational credit decision framework can guide further empirical analysis on the role of behavioural factors in lending decision making. The framework provides new insights that are valuable in enhancing the SMEs lending theory, practice, and policy. Keywords: behavioural finance, bounded rational theory, business banking, credit decision, small and medium-sized enterprises (SMEs)

2003 ◽  
Vol 6 (1) ◽  
pp. 72-88 ◽  
Author(s):  
Ntiedo J. Umoren

This study analysed the role of trust in informal lending decision-making process. By applying verbal protocol analysis, this paper empirically examined the role of trust and cooperation in lender’s initial reaction to potential lending opportunities, and the lender’s assessment of the intermediary responsible for providing the initial referral of the lending opportunity. The results corroborate earlier findings, and provide sufficient evidence to confirm that about 93 per cent of lending opportunities presented to informal lenders are rejected. It also shows that considerable reliance is placed on the brokers presenting the opportunities. The result also indicates that the dearth of entrepreneurial development in Nigeria is tied implicitly to the instant trust and instant cooperation paradigm.


2021 ◽  
pp. 238008442110144
Author(s):  
N.R. Paul ◽  
S.R. Baker ◽  
B.J. Gibson

Introduction: Patients’ decisions to undergo major surgery such as orthognathic treatment are not just about how the decision is made but what influences the decision. Objectives: The primary objective of the study was to identify the key processes involved in patients’ experience of decision making for orthognathic treatment. Methods: This study reports some of the findings of a larger grounded theory study. Data were collected through face-to-face interviews of patients who were seen for orthognathic treatment at a teaching hospital in the United Kingdom. Twenty-two participants were recruited (age range 18–66 y), of whom 12 (male = 2, female = 10) were 6 to 8 wk postsurgery, 6 (male = 2, female = 4) were in the decision-making stage, and 4 (male = 0, female = 4) were 1 to 2 y postsurgery. Additional data were also collected from online blogs and forums on jaw surgery. The data analysis stages of grounded theory methodology were undertaken, including open and selective coding. Results: The study identified the central role of dental care professionals (DCPs) in several underlying processes associated with decision making, including legitimating, mediating, scheduling, projecting, and supporting patients’ decisions. Six categories were related to key aspects of decision making. These were awareness about their underlying dentofacial problems and treatment options available, the information available about the treatment, the temporality of when surgery would be undertaken, the motivations and expectation of patients, social support, and fear of the surgery, hospitalization, and potentially disliking their new face. Conclusion: The decision-making process for orthognathic treatment is complex, multifactorial, and heavily influenced by the role of DCPs in patient care. Understanding the magnitude of this role will enable DCPs to more clearly participate in improving patients’ decision-making process. The findings of this study can inform future quantitative studies. Knowledge Transfer Statement: The results of this study can be used both for informing clinical practice around enabling decision making for orthognathic treatment and also for designing future research. The findings can better inform clinicians about the importance of their role in the patients’ decision-making process for orthognathic treatment and the means to improve the patient experience. It is suggested that further research could be conducted to measure some of the key constructs identified within our grounded theory and assess how these change during the treatment process.


Author(s):  
P. Timofeev

The gradual enlargement of the EEC has necessitated an adaptation of European supranational structures established in the 1950-1970s to the needs of the time. Under these circumstances one of the key priorities of France's participation in the EU is he struggle for preserving her influence on the EU decision-making process. The article is devoted to the interaction of France with its partners in the EU institutions. This implies not only the implementation of its own interests, but also the search for compromise more or less satisfactory to all participants.


2021 ◽  
Vol 429 ◽  
pp. 119162
Author(s):  
Michelle Gratton ◽  
Bonnie Wooten ◽  
Sandrine Deribaupierre ◽  
Andrea Andrade

2018 ◽  
Vol 11 (1) ◽  
pp. 75-89 ◽  
Author(s):  
Patrick F. A. van Erkel

AbstractPrevious studies have found similarities with presidential candidates or party leaders to be an important factor in explaining voting behaviour. However, with the exception of gender, few studies have structurally studied voter-candidate similarities in intra-party electoral competition. This study investigates the Belgian case and argues that voter-candidate similarities play a role in the decision-making process of citizens when casting preferential votes. Moreover, it investigates whether underrepresented groups, and especially women, are more guided by these voter-candidate similarities than overrepresented groups. To achieve this aim voter and candidate characteristics are modelled simultaneously. This enables an investigation of the decision-making process of voters while taking into account structural inequalities at the supply side. The results demonstrate that citizens are indeed more likely to cast preferential votes for candidates similar to themselves and that these effects are stronger for underrepresented groups. Hence, preferential voting could ultimately pave the way for better descriptive representation.


2021 ◽  
Author(s):  
Anahita A. Jami ◽  
Philip R. Walsh

A wider use of renewable energy is emerging as a viable solution to meet the increasing demand for global energy while contributing to the reduction of greenhouse gas emissions. However, current literature on renewable energy, particularly on wind power, highlights the social barriers and public opposition to renewable energy investment. One solution to overcome the public opposition, which is recommended by scholars, is to deploy a collaborative approach. Relatively little research has specifically focused on the role of effective communication and the use of a knowledge-broker in collaborative decision-making. This study attempts to fill this gap through the proposition of a participatory framework that highlights the role of the knowledge-broker in a wind project decision-making process. In this paper, five illustrative wind projects in Ontario are used to highlight the current situation with public participation and to address how the proposed framework could have improved the process. Based on the recommended collaborative framework, perception must shift from the dominant view of the public as “a risk to be managed” towards “a resource that can be tapped”. The developers need to improve sharing what they know and foster co-learning around questions and concerns.


Author(s):  
Syahrizal Dwi Putra ◽  
M Bahrul Ulum ◽  
Diah Aryani

An expert system which is part of artificial intelligence is a computer system that is able to imitate the reasoning of an expert with certain expertise. An expert system in the form of software can replace the role of an expert (human) in the decision-making process based on the symptoms given to a certain level of certainty. This study raises the problem that many women experience, namely not understanding that they have uterine myomas. Many women do not understand and are not aware that there are already symptoms that are felt and these symptoms are symptoms of the presence of uterine myomas in their bodies. Therefore, it is necessary for women to be able to diagnose independently so that they can take treatment as quickly as possible. In this study, the expert will first provide the expert CF values. Then the user / respondent gives an assessment of his condition with the CF User values. In the end, the values obtained from these two factors will be processed using the certainty factor formula. Users must provide answers to all questions given by the system in accordance with their current conditions. After all the conditions asked are answered, the system will display the results to identify that the user is suffering from uterine myoma disease or not. The Expert System with the certainty factor method was tested with a patient who entered the symptoms experienced and got the percentage of confidence in uterine myomas/fibroids of 98.70%. These results indicate that an expert system with the certainty factor method can be used to assist in diagnosing uterine myomas as early as possible.


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