Posted: Tuesday, April 18, 2017

Atefeh Yazdanparast, assistant professor of marketing, and Yasser Alhenawi, associate professor of finance, have a new manuscript accepted for publication in the Financial Service Review. Their work explores the role of psychological characteristics in household borrowing decisions.

In the manuscript, they report evidence that the attitude toward borrowing and the intuition to borrow are not always consistent and, more interestingly, the discrepancies between the two vary across personalities.

Further, they show that borrowing options are not homogenous and are motivated differently. They find that individuals with greater need for material resources have stronger intentions for mortgages, home improvement loans, business loans, personal loans, and payday loans. In contrast, individuals with greater need for arousal have stronger intentions for home improvement loans, business loans, student loans, personal loans, and payday loans.

The Financial Service Review is a reputable academic journal known for its strong affiliation with professional licensing institutions like the Certified Financial Planning Board.