Title: A Good Sketch is Better than A Long Speech: Evaluate Delinquency Risk through Real-Time Video Analysis

Speaker: Jing Shi

Time: 10:00-11:30, March 7th, 2023 (Tuesday)

Venue: Tencent Meeting (Meeting ID: 501 555 072)

Organizer: School of Accounting, Dongbei University of Finance and Economics

Abstract:

In this paper, we adopt an innovative strategy to assess borrowers’ creditworthiness in consumer credit markets. This new assessment strategy applies machine-learning based analyses on real-time video information that records borrowers’ behavior during the loan application process. We find that the extent of borrowers’ facial expressions of happiness is negatively associated with the likelihood of future loan delinquency. In contrast, such delinquency likelihood increases with the degree of fear expressions. These results are consistent with two economic channels relating to the adequacy and uncertainty of borrowers’ future income, drawn from the extant psychology and economics literature. Our study provides important practical implications for marketplace lenders and policymakers.

Introduction of Speaker:

Jing Shi is a professor of finance and doctoral supervisor at the School of Business at Macquarie University, Australia. Shi graduated with a PhD in finance from the National University of Australia. He is currently a member of the Accounting and Finance Association of Australia and New Zealand, a council member of the Asian Financial Society, an associate editor-in-chief of the SSCI source journal Accounting and Finance, an editor-in-chief of the Journal of Accounting Literature, and an associate editor of Research in International Business and Finance. Research in International Business and Finance. Shi’s research interests include Chinese capital markets, financial technology, corporate finance, corporate governance and business strategies. Shi has published more than 70 papers in domestic and international academic journals such as American Economic Review, Journal of Political Economy, Administrative Science Quarterly, Strategic Management Journal, Management Science, and Economic Research.

Special Reminder:

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