| Autor: |
Fersi, Marwa, Boujelbène, Mouna |
| Zdroj: |
International Journal of Organizational Analysis; July 2021, Vol. 30 Issue: 6 p1672-1693, 22p |
| Abstrakt: |
Purpose: The purpose of this paper is to investigate the impact of loan officers’ overconfidence on risk-taking decision and solvency performance measured by z-scores in the context of Islamic and conventional microfinance institutions (MFIs). Design/methodology/approach: A random effect generalized least square regression was applied to examine the effect of overconfidence on credit risk-taking. The data set covers 326 conventional MFIs and 57 Islamic MFIs in six different regions over the period of 2005–2015. Findings: Overconfidence proxies have shown through high loan growth, low-interest margin and loan loss provision reveal negative consequences on risk-exposures for both MFIs averagely. The loan officer’s overconfidence is significantly and positively related to the risk-taking decision, and thus, a lower loan portfolio quality. Besides, loan officers’ risk-taking behaviour harms these institutions’ solvency performance. Originality/value: This paper makes an initial attempt to evaluate the effect of overconfidence behavioural bias on risk-taking decisions and its implication on the MFIs solvency and sustainability. |
| Databáze: |
Supplemental Index |
| Externí odkaz: |
|
