scholarly journals How Does the Urgency of Borrowing in Text Messages Affect Loan Defaults? Evidence from P2P Loans in China

2021 ◽  
Vol 2021 ◽  
pp. 1-13
Author(s):  
Hong Liu ◽  
Mingkang Yuan ◽  
Meiling Zhou
Keyword(s):  
Information Asymmetry ◽  
Significant Negative Correlation ◽  
Text Messages ◽  
Loan Default ◽  
Loan Repayment ◽  
Text Length ◽  
Text Information ◽  
Default Risks ◽  
Loan Defaults ◽  
Default Data

In P2P loans with information asymmetry, the text information described by the borrower plays an important role in alleviating the information asymmetry between borrowers and lenders. To explore the borrowing described in text information and its relationship with default behavior, this article selects credits from April 2014 to October 2016 as the repayment period and studies default data. This is performed based on the length of the excavated text, purpose of the loan, repayment ability, willingness to reimburse, five text variables, and degree of loan urgency. The empirical results show that text length has a significant negative correlation with the default probability of borrowers. Different loan purposes have different default risks. Interestingly, the more urgent a loan is, the more likely the borrower is to default. However, repayment ability information and repayment willingness information have no significant effect on default behavior. In addition, the Nagelkerke R2 improved by nearly 3% in the logistic regression model with the addition of text variables. In short, fully excavating loan description information is helpful in reducing the risk of loan default.

scholarly journals Study Loan Defaults Among Tertiary Graduates

2020 ◽  
Vol 11 (3) ◽  
pp. 125
Author(s):  
Nor Balkish Zakaria ◽  
Muhammad Rasyid ◽  
Norazida Mohamed ◽  
Dalila Daud ◽  
Aida Maria Ismail
Keyword(s):  
Employment Status ◽  
Family Income ◽  
Tertiary Education ◽  
Education Level ◽  
Loan Default ◽  
Loan Repayment ◽  
Research Attention ◽  
Funding Agencies ◽  
Loan Defaults ◽  
Loan Amount

Educational Loan is an alternative of financial aids that is provided by the study funding agencies of Malaysia to reduce the economic burden of students in order to finance their studies at tertiary education level. Despite the increasing number of students who obtaining these educational loans, the issue of default in loan repayment among borrowers merely needs research attention. Thus this study aims to investigate the factors of study loan default among Malaysia tertiary graduates. Among the factors examined are family income, employment status and loan amount while respondents’ age, gender, marital status and education level are controlled. Questionnaires were distributed to 430 Universiti Teknologi MARA, Johor, Malaysia graduated respondents via online and 209 were returned The result of this study revealed that the employment status, loan amount and education level are significant to study loan default among Malaysian tertiary graduates. The results could serve some highlights to any study financing agencies to further understand their borrower intuitions in paying back loans they owed.

scholarly journals An Analysis of the Unpredictable Factors Influencing Loan Default in Small Scale Enterprises in the Port Loko Municipality in Sierra Leone using the Fish Bone Diagram

2021 ◽  
Vol 7 (2) ◽  
pp. 119-128
Author(s):  
Edmund Benedict Amara
Keyword(s):  
Sierra Leone ◽  
Research Question ◽  
Fish Bone ◽  
Small Scale ◽  
Microfinance Institutions ◽  
Random Sample Size ◽  
Loan Default ◽  
Factors Influencing ◽  
Fishbone Diagram ◽  
Loan Defaults

The study shows that there are unpredictable factors influencing loan default in small-scale enterprises in Port Loko Municipality. A fishbone diagram which is a cause an effect tool was used to determine these factors. A brainstorming activity was used to get the views of participants with regard to the Research Question. The research question was to respond to a research objective which was “Are there unpredicted factors influencing loan default in small scale enterprises in Port Loko Municipality in Sierra Leone?”. Reviews of necessary literature were done to aid the study. In the review, matters relating to loan default and possible causes were addressed. It is unfolded that there are some loan defaults that are as a result of the borrowers’ lapses and others that are lender-oriented causes. The population size of one hundred and a random sample size of sixty people were used as participants to carry out the brainstorming activity. The population is comprised of small-scale enterprise owners and workers of credit or Microfinance institutions in the Municipality. Brainstorming participants proved that the death of clients or borrowers, internal insecurity, outbreak of diseases (Pandemic), Natural Disasters, and accident all significantly influence loan default of small-scale enterprises.

scholarly journals SMEs Intervention Programmes in Nigeria: Evaluating Challenges Facing Implementation

2021 ◽  
Vol 2 (1) ◽  
pp. 16-25
Author(s):  
Tonuchi Joseph ◽  
Pauline Obikaonu ◽  
Charles Ariolu ◽  
Chinyere Nwolisa ◽  
Aderibigbe Aderohunmu
Keyword(s):  
Monitoring And Evaluation ◽  
Economic Stability ◽  
Intervention Programme ◽  
Loan Default ◽  
Political Interference ◽  
Inadequate Knowledge ◽  
Programme Design ◽  
Default Risks ◽  
Descriptive Survey ◽  
Year 2000

To ensure price and economic stability, the central bank of Nigeria has adopted several unconventional monetary policy measure such as MSMEs credit intervention with the aim of boosting credit availability in specific sector of the economy. The intuition is that rise in productive activities/investment will indirectly promotes price stability the core mandate of the bank. Therefore, this study investigated the challenges facing implementation of real sector (MSMEs) intervention programmes of the CBN since year 2000 to 2020. The study employed mixed method using descriptive survey approach to sample 62 intervention programme implementers and 400 Micro, Small and Medium Sized Enterprises (MSMEs). The findings reveal among others that high loan default risks, politicization of programmes, and inadequate infrastructural development are the leading challenges facing programme implementers in Nigeria. Applicants' non-eligibility in programmes applied for, poor business plan or inadequate knowledge in proposed business topped the reasons for failures among applicant MSMEs. Consequently, a need for more public-private partnerships in programme design, monitoring, and evaluation to forestall political interference is advised.

scholarly journals Unraveling Contradictions: Which Glosses Facilitate Reading Comprehension Among ELLs, and Why?

2022 ◽  
Vol 13 (1) ◽  
pp. 1-11
Author(s):  
Andrea Lofgren
Keyword(s):  
English Language Learners ◽  
Reading Comprehension ◽  
Language Learners ◽  
English Language ◽  
Effective Means ◽  
Trade Offs ◽  
Incidental Vocabulary ◽  
Text Genre ◽  
Text Length ◽  
Text Information

This critical literature review provides study details for 36 studies examining the effect of glossing for language acquisition among English language learners (ELLs). Useful tables include specificity of participants, gloss types, target vocabulary items and text information about all studies. An analysis of these studies reveals that glossing is an effective means to enhance reading comprehension among ELLs. However, gloss language—whether L1 or English, may depend on learner factors. Other findings include the importance of proximity of gloss to text and the need for glosses that do not require readers to leave the text to access meaning. Considerations such as text genre, text length, targeted items for glossing, number of items to gloss, and gloss presentation are also examined and discussed, including which gloss types may result in trade-offs when glossing is used as a means to promote incidental vocabulary acquisition through independent reading. Several recommendations for further research are offered.

scholarly journals A Review of Existing Literature on Sustainability, Mission Drift and Loan Defaults

2019 ◽  
pp. 7-16
Author(s):  
Dr.Kashif Beg
Keyword(s):  
Financial Performance ◽  
Research Work ◽  
Women Clients ◽  
Loan Repayment ◽  
Trade Off ◽  
Factors Affecting ◽  
Mission Drift ◽  
Self Sufficiency ◽  
Loan Defaults

As the abundance of research work has been done in the field of Microfinance in the last two decades. This research work deals with the issue of factors affecting operational self-sufficiency, financial self-sufficiency and loan repayment performance and the trade-off between financial performance and outreach to poor and women clients. The section one deals with prior research work on factors affecting the sustainability of MFIs. Section two reviews prior research works on Mission drift i.e. trade-off between sustainability and outreach. Finally, section three deals with the factors affecting loan repayment performance.

scholarly journals Predicting Loan Defaults Using Logistic Regression

2021 ◽  
Vol 10 (1) ◽  
Author(s):  
Selena Zhao ◽  
Jiying Zou
Keyword(s):  
Logistic Regression ◽  
Exploratory Data Analysis ◽  
Predictor Variables ◽  
Loan Default ◽  
Stratified Sample ◽  
Anonymized Data ◽  
Exploratory Data ◽  
Loan Defaults ◽  
The Interest Rate ◽  
Made In

We used anonymized data from a loan company to analyze correlations between loan defaults and other characteristics of loans or borrowers of loans. We performed an exploratory data analysis of the different factors and how they correlated with loan defaults. Using observations made in the EDA, we proceeded to use logistic regression to predict the odds of loan defaults with several loan characteristics as predictor variables. Different models were evaluated and cross-validated using AIC, AUC, and predicted accuracy. Weighted accuracy was also measured because the loan dataset was a stratified sample. We concluded that the interest rate most accurately predicted the odds of a loan default and that the most useful model was both simplistic and accurate. Research was limited by the variables that were not analyzed during EDA, the limited variables the loan dataset contained, and the modeling technique used.

scholarly journals Earnings Smoothing and Bankruptcy Risk in Liquidating Private Firms

2018 ◽  
Vol 10 (1) ◽  
pp. 162
Author(s):  
Nor Afifah Shabani ◽  
Saudah Sofian
Keyword(s):  
Interest Rates ◽  
Stock Price ◽  
Crash Risk ◽  
Private Firms ◽  
Loan Default ◽  
Bankruptcy Risk ◽  
Public Firms ◽  
Earnings Smoothing ◽  
Distressed Firms ◽  
Default Risks

Smooth earnings are preferred by managers and creditors because they represent a stable business operations as well as low loan default risks and thus creditors reward firms which have smooth earnings with better loan covenant terms and lower interest rates. Nonetheless, recent literature shows that earnings smoothing in public firms is associated with stock price crash risk. Using Altman Z” score to measure firm’s specific bankruptcy risk, this study examines the association between accrual earnings smoothing and bankruptcy risk in liquidating private firms in UK and finds that earnings smoothing significantly negatively affects those firms' bankruptcy risk. The finding implies that financially distressed firms engage with less earnings smoothing, possibly because they do not have the opportunity to engage in accrual earnings smoothing anymore. Nonetheless, further examination shows that these firms engage less with earnings smoothing because they are being monitored by external creditors, indicated by significantly high leverage during the last period before they are being liquidated.

Messengers of Bad News or Bad Apples? Student Debt and College Accountability

2015 ◽  
Vol 10 (2) ◽  
pp. 277-299 ◽  
Author(s):  
Rajeev Darolia
Keyword(s):  
Low Income ◽  
Student Loan ◽  
Access To Higher Education ◽  
Capital Investments ◽  
Loan Default ◽  
Public And Private ◽  
Loan Repayment ◽  
For Profit ◽  
Student Loan Default ◽  
Public Money

Student loan debt and defaults have been steadily rising, igniting public worry about the associated public and private risks. This has led to controversial regulatory attempts to curb defaults by holding colleges, particularly those in the for-profit sector, increasingly accountable for the student loan repayment behavior of their students. Such efforts endeavor to protect taxpayers against the misuse of public money used to encourage college enrollment and to safeguard students against potentially risky human capital investments. Recent policy proposals penalize colleges for students’ poor repayment performance, raising questions about institutions’ power to influence this behavior. Many of the schools at risk of not meeting student loan default measures also disproportionately enroll low-income, nontraditional, and financially independent students. Policy makers therefore face the challenge of promoting the efficient use of public funds and protecting students while also encouraging access to higher education.

scholarly journals Wybrane teorie umów kredytowych – przegląd badań

2015 ◽  
Vol 2 (3) ◽  
pp. 113-125
Author(s):  
Andrzej Paliński
Keyword(s):  
Information Asymmetry ◽  
Theoretical Studies ◽  
Loan Repayment ◽  
Costly State Verification ◽  
Debt Contract ◽  
The Impact

The article reviews theoretical studies on the loan agreement. First, the resultsof researches in the area of the costly state verification models proving optimalityof the standard debt contract in conditions of information asymmetry and existence of costs of verification of the debtor’s outcomes were analysed. Followedby analysis of the models included in the mainstream of the incomplete contracttheory, which assume unpredictability of nature and the need to take into accountthe role of collateral and the liquidation value on the loan repayment. The focuswas also placed on researches taking into account the impact of debt renegotiationand long lender-borrower relationship on the behaviour of the borrower duringthe repayment of the debt.

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