Does behavioral biases matter in SMEs' borrowing decisions? Insights from Morocco
| Autor: | Khalid Ayad, Anass Touil, Nabil El Hamidi, Khaoula Dobli Bennani |
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| Jazyk: | angličtina |
| Rok vydání: | 2024 |
| Předmět: | |
| Zdroj: | Banks and Bank Systems, Vol 19, Iss 1, Pp 170-182 (2024) |
| Druh dokumentu: | article |
| ISSN: | 1816-7403 1991-7074 |
| DOI: | 10.21511/bbs.19(1).2024.15 |
| Popis: | Bank financing decisions by small and medium-sized enterprises (SMEs) are crucial to their growth and survival, particularly in emerging economies such as Morocco. This study aims to assess the impact of behavioral biases on these decisions, an area little explored in the existing financial literature. The main objective is to analyze how behavioral biases such as overconfidence, risk aversion, confirmation bias, anchoring, and managerial myopia biases influence bank financing decisions of Moroccan SMEs. The approach adopted is quantitative and uses robust least squares regression to analyze data collected from 167 Moroccan SMEs. The results reveal that overconfidence and anchoring have a significant positive impact on the propensity to take out bank loans, while risk aversion and confirmation bias have a negative effect. Managerial myopia had no significant influence. Control variables such as past financial performance, the length of the banking relationship, and lower risk also positively influence the financing decision. |
| Databáze: | Directory of Open Access Journals |
| Externí odkaz: |
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