The use of accounting information in bank lending decisions

Danos, Paul; Holt, Doris L.; Imhoff, Eugene A.

doi:10.1016/0361-3682(89)90025-1

Cited by 85 publications

(59 citation statements)

References 6 publications

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“…Loan officers are under pressure to generate loan volume to meet bank profit goals (McNamara and Bromiley, 1997). They reach a high level of confidence early in the lending process based on summarized accounting and other general background data (Danos et al, 1989).…”

Section: Previous Research On Funding Decision Criteriamentioning

confidence: 99%

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Making Loan Decisions in Banks: Straight from the Gut?

Wilson

2015

J Bus Ethics

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Section: Previous Research On Funding Decision Criteriamentioning

confidence: 99%

“…The photo in Fay and Williams's (1993) experiment may well have affected the loan decision rather than the proposal itself. Danos et al (1989) looked at the impact of accounting information on the judgement using cases, where variables were manipulated.…”

Section: Critique Of Previous Research and Rationale For This Researchmentioning

confidence: 99%

Making Loan Decisions in Banks: Straight from the Gut?

Wilson

2015

J Bus Ethics

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“…Examining the bank lending process, Danos et al (1989) have showed how the loan officers can use various types of accounting information in banks' credit-granting decision process: at the first stage the bank examines publicly available data on potential borrower in order to make a preliminary judgment on the quality of the proposed loan. So, the loan officers try to gather background information on firm's history and financial report information.…”

Section: Literature Review On the Bank Lending Processmentioning

confidence: 99%

“…firm rating) which supported the managers in the decisions related to grant or not grant the proposed loan. The lending decision has to take into account many attributes that cannot always be weighted in a normative way (Danos, Holt, & Imhof, 1989;Crouhy, Galai, & Mark, 2001). Thus, sharing (quantitative and qualitative) information represents a very important point in order to create a sufficient knowledge which could help to manage the risk in the bank-business relationships (Neef, 2005).…”

Section: Introductionmentioning

confidence: 99%

The Bank Lending Process: Accounting Information Role in Constructing Realities or Illusions

Ruggeri

Leotta

Rizza

2018

IJBM

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In the last decades the Bank and finance literature have paid a growing attention to the bank lending process. Considering the different kinds of information, such as hard and soft information, involved in the risk evaluation, contributions to the bank lending literature have highlighted that small banks are better able to collect and act on soft information than large banks. In the bank lending process the risk can be assessed differently among actors, so the communication plays an important role in creating the firm rating evaluation. This paper aims to understand how the accounting information, as a language, could facilitate a successful functioning reality construction or an illusionary one. Drawing on the pragmatic constructivist perspective, which assumes the reality construction as the integration between facts, values, possibilities and communication, we try to understand how the actors integrate their different calculative cultures (calculative idealism and calculative pragmatism) in the bank lending process. In doing so, we carry out two case studies at two small banks operating in the South of Italy. The empirical evidences show how the presence of multiple calculative cultures has entailed disagreement, slowing down the lending process. The integration of the two calculative cultures has been showed underlining their complementarities. This paper contributes to highlight the useful role of the pragmatic constructivist approach to study the problem of the co-presence of different cultures within an organization, explaining how an integration can occur.

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“…This study continues to learn more about financial reporting's quality issues to make specific recommendations which help enhance their usefulness for business borrowing activities. (Danos, Holt, & Imhoff, 1989). Operating cash flow was demonstrated to have a close relationship with credit risk at enterprises which have high long-term loan rates or less business risks (Independent Evaluation Group [IEG], 2010).…”

Section: Introductionmentioning

confidence: 99%

Information on Financial Statements for Loan Decision-Making of Commercial Banks in Vietnam

Minh¹

2015

JMAA

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Financial statements (FS) are tools which provide information to users for making business decisions. Among the organizations, banks are the firms which conducted and did business with risks. In particular, commercial banks continue to play a dominant role in the whole system, and local commercial banks still have an edge in its widespread network across the country over foreign banks. This article is going to present the survey which clarifies the role of FS in commercial banks' loan decisions in Vietnam. Moreover, this paper also discusses FS's quality currently, thereby making suggestions for enterprises to enhance the usefulness of accounting information in borrowing activities. This paper has taken performance with 74 official employees in commercial banks in Vietnam.The results indicated the qualitative characteristics of banks when disclosing the financial statements. This article also gave the six oriented solutions to improvement of the loan decision-making by banks.

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The use of accounting information in bank lending decisions

Cited by 85 publications

References 6 publications

Making Loan Decisions in Banks: Straight from the Gut?

Making Loan Decisions in Banks: Straight from the Gut?

The Bank Lending Process: Accounting Information Role in Constructing Realities or Illusions

Information on Financial Statements for Loan Decision-Making of Commercial Banks in Vietnam

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