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

Authors

  • 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

DOI:

https://doi.org/10.32479/irmm.17257

Keywords:

Creditworthiness (5Cs), Credit Decision, Intellectual Capital, Banks

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.

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Published

2024-10-31

How to Cite

Al-Slehat, Z. A. F., Almanaseer, S. R., Al Sharif, B. M. M., Al-Haraisa, Y. E., Aloshaibat , S. D., & Almahasneh, M. A. (2024). Creditworthiness Criteria According to the 5Cs Model and Credit Decision: The Moderating Role of Intellectual Capital. International Review of Management and Marketing, 14(6), 274–287. https://doi.org/10.32479/irmm.17257

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