The Research On The Effects Of Internalized Norm Identification On Credit Default

Nowadays, there is a great deal of non-performing loans due to the default of individual borrowers, individual businesses and small businesses who get bank credits from domestic major banks, which is not practically mitigated by the recent reform and innovation movements in the banking industry. From the statistical data published by the CBRC, we can see that the default rate of credit is still an alarming problem. On the study of factors affecting the performance of credit, previous learners mainly analyze from the aspects of bank management and institutional economics, not taking into account the endogenous influences which also have an impact on the individual’s decision of honoring an agreement. Furthermore, as the existing preferred work is primarily result-oriented, previous learners overlook the attentions that each individual pays to the rules and social norms as well. Thus this thesis, basing on social preference theories and preference to rule itself, introduces the autogenous factors that affect credit default. Guided by the method of experimental inquiry, this thesis constructs rules combined by dictatorship and ultimatum, and selects different experiments to measure the subjects’ aversion to unfair rules and unfair property (result-oriented); then tests the subjects’ risk preference through the method integrated by lottery experiments and questionnaires on risk; finally, establishes three groups of experiments (non-punishment, direct punishment within one group and interactive punishment among three groups) on the basis of trust experiment, which will helps to test the performance rates of the subjects and investigate how the rule preference influences the credit default. Above all, the conclusions are:(Ⅰ) the recognition of norms plays a role in the nonperformance of credit, in other words, the more the subjects disgust the unfair rule, the more likely they will keep an appointment; (Ⅱ) risk preference and aversion to property unfair also influence the nonperformance of credit a lot. In addition, seeing from the three compared loan experiments, direct punishment within one group has significant functions on nonperformance.