Naslov
Linking Banking Sector Advertising to Personal Indebtedness: The Case of Croatia

Autori
Škalamera-Alilović, Dunja ; Dimitrić, Mira ; Kupinić Guščić, Darja

Vrsta, podvrsta i kategorija rada
Radovi u zbornicima skupova, cjeloviti rad (in extenso), znanstveni

Izvornik
Economic and Social Development / Przygoda, Miroslaw ; Lovrencic Butkovic, Lana ; Szymanska, Elzbieta - Rabat : Varazdin Development and Entrepreneurship Agency, Varazdin, Croatia ; Faculty of Law, Economics and Social Sciences Sale, Morocco ; Faculty of Mangement University of Warsaw, Poland ; University North, Koprivnica, Croatia, 2018, 94-105

Skup
29th International Scientific Conference on Economic and Social Development

Mjesto i datum
Rabat, Maroko, 10.05.2018. - 11.05.2018

Vrsta sudjelovanja
Plenarno

Vrsta recenzije
Međunarodna recenzija

Ključne riječi
Banking Sector Advertising ; Personal Indebtedness ; Responsible Lending ; Household Credit

Sažetak
The global problem of growing household indebtedness is gaining momentum. It has become one of the prominent societal problems and therefore on the agenda of many governments as a key problem to cope with. So far it can be observed that great attention of both academic and government communities has been directed towards only one agent in the debt generation process – the borrower/household and its responsibility in mitigating the present level of indebtedness as well as accountable management of future new debt. The neglected problem area is the role of the second agent in the debt contract relationship, and that is the lendermainly the banking sector. The problematization of the responsibility of banks in unsustainable levels of household indebtedness is founded on multiple phenomena as sources of inequality in debt contracting. The first phenomenon that makes banks the superior side of the relationship is massive information asymmetry. Banks are far more knowledgeable on all matters of financial nature than their counterparts (borrowers). The second phenomenon is banks’ enormous advantage in resourcefulness, both material (technological) and intangible (intellectual capital) resources. Therefore, it is only fair to focus the research on shedding light on banking sector operations as drivers of excessive household indebtedness. To gain market share and stimulate demand for their financial services, mainly expansion of credit, banks heavily rely on non-price competition tools such as advertising, sales promotion, personal selling, and publicity. Hence, the goal of this research is development of causal links among banking sector advertising activities, their outcomes in credit market developments and personal indebtedness. The empirical analysis of the 15-year time series is performed by using quarterly data on Croatian banking sector advertising expenditures and household sector credits. The results of the Granger-causality analysis indicate that there is a one-way predictive causality in which the advertising expenditures of the banking sector can be used to predict household sector credits as a principal indicator of personal indebtedness.

Izvorni jezik
Engleski

Znanstvena područja
Ekonomija

Napomena
This work has been supported by the Croatian
Science Foundation under the project 6558 Business
and Personal Insolvency: The Ways to Overcome
Excessive Indebtedness and by the University of
Rijeka under the project: Approaches and Methods
of Cost and Management Accounting in Croatian
Public Sector (No.13.02.1.2.09).

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