Can I read Similarity Bias in Credit Decisions for Entrepreneurs on the Brink of Bankruptcy on EtoBox?

Similarity Bias in Credit Decisions for Entrepreneurs on the Brink of Bankruptcy by Niek Strohmaier; Jan Adriaanse; Kees Bos; Helen Pluut is a Social Sciences article available to read on EtoBox.

What is Similarity Bias in Credit Decisions for Entrepreneurs on the Brink of Bankruptcy about?

Throughout entrepreneurs' professional life span, external parties judge the growth potential and viability of their ventures in relation to possible investments or for the extension of credit by financial institutions such as banks. This is true in the start-up phase, in times of significant growth, and also when a venture is in decline and experiencing financial distress. During such periods of substantial decline, entrepreneurs typically require additional funding from investors and/ or shareholders, or additional credit from their bank to finance a turnaround or to survive a loss-making phase. When entrepreneurs are unable to fulfill their duties toward their bank and require additional credit or a deferment on their loan payments, it is the duty of the bank's representative to assess the viability of the distressed venture. If the banker judges positively, ensuing support from the bank can be expected. If the banker judges negatively, however, bankruptcy might follow. Hence, the entrepreneur's future depends for an important part on the banker's assessment of the venture's future prospects. For entrepreneurs the consequences of bankruptcy can be detrimental, both professionall

Who reads Similarity Bias in Credit Decisions for Entrepreneurs on the Brink of Bankruptcy?

Author

Niek Strohmaier; Jan Adriaanse; Kees Bos; Helen Pluut

Publisher

Wiley

Published

2021

Language

EN

Field

Social Sciences