Money Talks: The Role of Language in Loan Officers' Information Processing

8 Pages Posted: 10 Jul 2024

See all articles by Jeremie Bertrand

Jeremie Bertrand

Catholic University of Lille - IÉSEG School of Management, Lille Campus; CNRS - Lille Economics & Managment - UMR 9221

Sarah Maire

Catholic University of Lille - IESEG School of Management

Caroline Perrin

Utrecht University

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Abstract

Research suggests that loan officers may exhibit biases in their credit decision-making process. Utilizing proprietary data from a French bank, we demonstrate that the language spoken by the loan officer also influences their decision-making. A loan officer who does not speak French is inclined to avoid using qualitative information, as it is cognitively challenging to process, and instead focuses on quantitative information.

Keywords: language, decision-making, cognitive process, qualitative information

Suggested Citation

Bertrand, Jeremie and Maire, Sarah and Perrin, Caroline, Money Talks: The Role of Language in Loan Officers' Information Processing. Available at SSRN: https://ssrn.com/abstract=4891334 or http://dx.doi.org/10.2139/ssrn.4891334

Jeremie Bertrand (Contact Author)

Catholic University of Lille - IÉSEG School of Management, Lille Campus ( email )

3 rue de la Digue
Lille, 59000
France

CNRS - Lille Economics & Managment - UMR 9221 ( email )

Lille
France

Sarah Maire

Catholic University of Lille - IESEG School of Management ( email )

Socle de la Grande Arche
1 Parvis de la Defense
Puteaux, 92800
France

Caroline Perrin

Utrecht University ( email )

Vredenburg 138
Utrecht, 3511 BG
Netherlands

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