A Multiattribute Analysis of the Commercial Lending Decision

This paper examines the commercial loan decision process from the perspective of the individual loan officer. An analysis of this process concerns the relative effects of various criteria on the loan application and the degree to which tradeoffs are made among them by the loan officer. A basic theory of the process is first developed. The model is then empirically tested using a set of factorially designed combinations of these variables. This format avoids several of the problems previously encountered when the lending process has been empirically examined. The model not only exhibits a high degree of explanatory power but also permits important insights into this process

Measurement Context Effects in Telephone-Survey-Based Tests of Causal Models

The purpose of this research is to examine the issue of measurement context effects in survey-based tests of attitudinal and related models. The specific issue examined concerns the degree to which the measurement process affects the objects of measurement (i.e., various attitudinal and related concepts). Based upon the memory accessibility-diagnosticity theory specified by Feldman and Lynch (1988) and the concept of spreading activation (Tourangeau and Rasinski 1988; Anderson 1978, 1983; Collins and Loftus 1975), the effects of context questionnaire items on answers to, and estimated relationships among, target questionnaire items in a study involving measures of antecedents and consequences of attitudes are examined. The findings indicate some measurement context effects in an equation predicting blood donation intentions. First, the findings suggest that measuring expectations prior to measuring intentions, when compared to measuring expectations after measuring intentions, caused the intentions scores to be higher. Since the respondents had generally favorable attitudes toward blood donation, this supports the Feldman and Lynch (1988) argument that context survey questions can result in activated beliefs that are diagnostic for answers to subsequent questions. Second, the findings suggest that measuring expectations prior to (after) measuring intentions resulted in a statistically significant increase (decrease) in the association between expectations and intentions. Third, the findings produced evidence that buffer questions that separate expectations (i.e., context) measures from other target measures reduced the context effects associated with the expectations measurement. An implication of this finding is that the use of intervening questionnaire items to separate questions that are likely to be influenced by measurement context effects may reduce context effects.Context effects, Telephone Surveys, Causal Models, Measurement, Market Research, Model Testing

A Multiattribute Analysis of the Commercial Lending Decision

This paper examines the commercial loan decision process from the perspective of the individual loan officer. An analysis of this process concerns the relative effects of various criteria on the loan application and the degree to which tradeoffs are made among them by the loan officer. A basic theory of the process is first developed. The model is then empirically tested using a set of factorially designed combinations of these variables. This format avoids several of the problems previously encountered when the lending process has been empirically examined. The model not only exhibits a high degree of explanatory power but also permits important insights into this process.</p

The Agricultural Lending Decision: A Multiattribute Analysis

The role of commercial bank lending in financing the farm production sector is an issue of growing importance. During the past several years, farm operators have become more capital intensive, thus requiring more loans to fund not only seasonal plantings but also capital expansion. While one area of research (Linsj Penson; Hesser 'and Schuh) has focused on the determinants of aggregate loan demand, subsequent work (Boehlje and Fisherj Boehlje, Harris and Hoskins) has concentrated on such demand in local financial markets. Despite this re search on financial market behavior, relatively little has been done to model and empirically test the decision process of individual lending officers in this market. Existing studies (i.e., Barry, Baker, and Sanint; Sonka, Dixon, and Jones).have concentrated primarily on.credit analysis of farm firms. The objective of this paper is to expand on existing research by incorporating the inter acting effects of credit considerations, market conditions, collateral and pricing into the decision process of the individual loan officer when faced with an array of farm loan situations.</p