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THE HUMAN SIDE OF THE BANKS’ CREDIT MANAGEMENT OF SMALL FIRMS-A Cognitive Approach to Corporate Evaluation

Kling, Katarina Svensson LU ; Driver, Michael J. and Larsson, Rikard LU (2019) 2. p.293-332
Abstract

The human side of corporate evaluation is frequently neglected in small firm and credit management research. However, it seems to matter both who is being evaluated, especially in smaller companies, and who is making the evaluation. A major reason is that individuals process information in different ways. The purpose of this paper is to develop a conceptual framework for the effects of human differences in corporate evaluation based on cognitive theories about individuals’ information processing behavior. Empirical data show clear differences in which information processing pattern is suited for particular situations. This implies that there is no such thing as the one best small firm manager or evaluator style. Effective prediction of... (More)

The human side of corporate evaluation is frequently neglected in small firm and credit management research. However, it seems to matter both who is being evaluated, especially in smaller companies, and who is making the evaluation. A major reason is that individuals process information in different ways. The purpose of this paper is to develop a conceptual framework for the effects of human differences in corporate evaluation based on cognitive theories about individuals’ information processing behavior. Empirical data show clear differences in which information processing pattern is suited for particular situations. This implies that there is no such thing as the one best small firm manager or evaluator style. Effective prediction of success requires instead consideration of how well the individual is matched to situational characteristics, such as industry, competition, and business idea. The framework contributes an understanding of the role of the evaluator’s personal preferences regarding the small firm manager as a person and the business situation as such and the advantages of “pluralistic-style” assessments focusing on the actual business fit between the small firm manager and the business idea/situation.

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Please use this url to cite or link to this publication:
author
; and
organization
publishing date
type
Chapter in Book/Report/Conference proceeding
publication status
published
subject
host publication
Risk Management : Volume II: Management and Control - Volume II: Management and Control
volume
2
pages
40 pages
publisher
Taylor & Francis
external identifiers
  • scopus:85145110017
ISBN
9780367244460
9780429282515
DOI
10.4324/9780429282515-22
language
English
LU publication?
yes
id
191652a0-a1ef-42fb-87bb-56f900d03900
date added to LUP
2023-01-20 12:21:04
date last changed
2024-03-21 17:46:32
@inbook{191652a0-a1ef-42fb-87bb-56f900d03900,
  abstract     = {{<p>The human side of corporate evaluation is frequently neglected in small firm and credit management research. However, it seems to matter both who is being evaluated, especially in smaller companies, and who is making the evaluation. A major reason is that individuals process information in different ways. The purpose of this paper is to develop a conceptual framework for the effects of human differences in corporate evaluation based on cognitive theories about individuals’ information processing behavior. Empirical data show clear differences in which information processing pattern is suited for particular situations. This implies that there is no such thing as the one best small firm manager or evaluator style. Effective prediction of success requires instead consideration of how well the individual is matched to situational characteristics, such as industry, competition, and business idea. The framework contributes an understanding of the role of the evaluator’s personal preferences regarding the small firm manager as a person and the business situation as such and the advantages of “pluralistic-style” assessments focusing on the actual business fit between the small firm manager and the business idea/situation.</p>}},
  author       = {{Kling, Katarina Svensson and Driver, Michael J. and Larsson, Rikard}},
  booktitle    = {{Risk Management : Volume II: Management and Control}},
  isbn         = {{9780367244460}},
  language     = {{eng}},
  month        = {{01}},
  pages        = {{293--332}},
  publisher    = {{Taylor & Francis}},
  title        = {{THE HUMAN SIDE OF THE BANKS’ CREDIT MANAGEMENT OF SMALL FIRMS-A Cognitive Approach to Corporate Evaluation}},
  url          = {{http://dx.doi.org/10.4324/9780429282515-22}},
  doi          = {{10.4324/9780429282515-22}},
  volume       = {{2}},
  year         = {{2019}},
}