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Homogeneity, Peer Monitoring, and Group Size on Joint Liability Lending Costs
Abstract
This paper aims to present evidence based on experimental method on the causal relation between homogeneity, peer monitoring (fatwa), size, and cost of non-repayment in Joint Liability Lending (kafalah). Given mixed findings and the importance of this issue to cost managerial, it is important to understand the condition under contextto improve repayment rate and reduce cost of non-repayment. This finding provides a mechanism for reducing cost of non-repayment in Joint Liability Lending (kafalah). This study designed to find out the impact of homogeneity, peer monitoring (fatwa), andgroup size on cost of Joint Liability Lending (kafalah). Data for this research were collected by conducting laboratory experiment with pre-test post-test control group design. The research findings shows homogeneity, peer monitoring (fatwa), and affect cost of non-repayment. This findings should be considered when develop Joint Liability Lending (kafalah) policy.
DOI: https://doi.org/10.26905/afr.v6i2.12659
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DOI: https://doi.org/10.26905/afr.v6i2.12659
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