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Creditworthiness Criteria According to the 5Cs Model and Credit Decision: The Moderating Role of Intellectual Capital

Author

Listed:
  • Zaher Abdel Fattah Al-Slehat

    (Department of Business Economic, Business Faculty, Tafila Technical University, Tafilah, Jordan)

  • Sufian Radwan Almanaseer

    (Department of Business Economic, Business Faculty, Tafila Technical University, Tafilah, Jordan)

  • Bader Mustafa Mahmoud Al Sharif

    (Department of Business Economic, Business Faculty, Tafila Technical University, Tafilah, Jordan)

  • Yazan Emnawer Al-Haraisa

    (Department of Business Administration, Tafila Technical University, Tafilah, Jordan)

  • Sulieman Daood Aloshaibat

    (Department of Business Economic, Business Faculty, Tafila Technical University, Tafilah, Jordan)

  • Mohammad Abdlwhab Almahasneh

    (Department of Business Economic, Business Faculty, Tafila Technical University, Tafilah, Jordan)

Abstract

The current study aims to examine how creditworthiness criteria based on the (5Cs) model with its dimensions (character, capacity, capital, conditions, and collateral) on the credit decision in the presence of intellectual capital as a moderating variable applied to the branches of Jordanian commercial banks in the southern governorates of Jordan. The study included 449 populations from these branches, with a sample size of 205 employees. The authors employed a quantitative approach and utilized Macro PROCESS v4.2 by Andrew F. Hayes for analysis within SPSS v.28 software to achieve the study objective and test its hypotheses. According to the findings of the study, there is a positive effect of creditworthiness criteria based on the (5Cs) model on the credit decision. Furthermore, the study discovered that there is a presence of a moderating role of intellectual capital on the relationship between creditworthiness criteria based on the (5Cs) model and the credit decision. The study recommends that banks should prioritize investing in training programs for employees to improve their ability to assess credit risk accurately.

Suggested Citation

  • Zaher Abdel Fattah Al-Slehat & Sufian Radwan Almanaseer & Bader Mustafa Mahmoud Al Sharif & Yazan Emnawer Al-Haraisa & Sulieman Daood Aloshaibat & Mohammad Abdlwhab Almahasneh, 2024. "Creditworthiness Criteria According to the 5Cs Model and Credit Decision: The Moderating Role of Intellectual Capital," International Review of Management and Marketing, Econjournals, vol. 14(6), pages 274-287, October.
    • Handle: RePEc:eco:journ3:2024-06-28
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    References listed on IDEAS

    as
    1. Liubov Pshenychna & Olha Skyba, 2017. "Knowledge Management as an Aspect of the Intellectual Capital Management," International Review of Management and Marketing, Econjournals, vol. 7(4), pages 61-66.
    2. Krayyem Al-Hajaya & Mohammad Saleh Altarawneh & Bayan Altarawneh, 2019. "Intellectual Capital Disclosure by Listed Companies in Jordan: A Comparative Inter-sector Analysis," International Review of Management and Marketing, Econjournals, vol. 9(1), pages 109-116.
    3. Hope Osayantin Aifuwa & Musa Saidu & Osaruese Cynthia Enehizena & Albert Osazevbaru, 2019. "Accounting Information And Lending Decision: Does Sustainability Disclosure Matter?," Copernican Journal of Finance & Accounting, Uniwersytet Mikolaja Kopernika, vol. 8(4), pages 61-89.
    4. Aina Čaplinska & Manuela Tvaronavičienė, 2020. "Creditworthiness place in Credit Theory and methods of its evaluation," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 7(3), pages 2542-2555, March.
    5. Kollin-Ondolos, Nigel & Tuyon, Jasman & Mohammed, Rozita Uji & Ahmad, Zamri, 2022. "Bounded rationality in bank credit decisions for SME lending: Evidence from bankers in Malaysia," Journal of Risk Management in Financial Institutions, Henry Stewart Publications, vol. 15(4), pages 362-390, October.
    6. Paul Castañeda Dower & Elizabeth Potamites, 2014. "Signalling Creditworthiness: Land Titles, Banking Practices, and Formal Credit In Indonesia," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 50(3), pages 435-459, December.
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    More about this item

    Keywords

    Creditworthiness (5Cs); Credit Decision; Intellectual Capital; Banks;
    All these keywords.

    JEL classification:

    • F65 - International Economics - - Economic Impacts of Globalization - - - Finance
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

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