Abstract
In an increasingly globalized and competitive market, shaped by rapid economic, social, and technological change, financial environments have become more uncertain and volatile. These developments have made the decision-making process for loan officers more complex and demanding. Since access to credit for individuals and small and medium-sized enterprises (SMEs) is critical for economic development and community well-being, it is essential to better understand the factors influencing loan approval decisions. Ultimately, financing decisions are made by individuals whose personal characteristics can affect the quality of their judgments. While traditional economic models often assume that decision-makers are fully rational and unaffected by emotion, research in psychology has shown that emotions play a significant role in financial decision-making. However, the influence of emotions, particularly anxiety, on the decisions of professional users such as loan officers remains underexplored. Although some studies have identified anxiety as a key emotion affecting decision processes, little is known about its specific impact on sophisticated financial decision-makers. This paper proposes a conceptual framework that integrates trait anxiety into the loan decision-making process, drawing from both financial and psychological theories. By doing so, it offers a more nuanced understanding of how human factors influence financial decisions. Additionally, the framework allows for cross-cultural comparisons by examining differences between Hawaiian and Canadian loan officers, providing insights into how cultural context may moderate the role of anxiety in professional judgment and decision-making.
Presenters
Bruce LagrangeProfessor, Management Sciences, University of Quebec at Rimouski (UQAR), Quebec, Canada
Details
Presentation Type
Paper Presentation in a Themed Session
Theme
Civic, Political, and Community Studies
KEYWORDS
DECISION MAKING PROCESS, ANXIETY, LOAN OFFICERS, SOPHISTICATED USERS, CONCEPTUAL FRAMEWORK
