Angry Borrowers: Ex Post Effects of Social Shaming on Debt Repayment

• 成果类型: Article; Early Access
• 署名作者: Liao, Li; Wang, Zhengwei; Yan, Hongjun; Yang, Jun; Zhou, Congyi
• 署名单位: Tsinghua University; DePaul University; Nanyang Technological University; Indiana University System; IU Kelley School of Business; Indiana University Bloomington
• 刊物名称: MANAGEMENT SCIENCE
• ISSN/ISSBN: 0025-1909
• DOI: 10.1287/mnsc.2023.00681
• 发表日期: 2025
• 关键词: Behavioral finance; Debt collection; privacy infringement; RECIPROCITY; social shaming

摘要

We examine the consequences of an intrusive debt-collection tactic that targets delinquent borrowers' social circles. Our identification strategy relies on the fact that some of the delinquent loans are not worked on because of collection agents' excessive workload. Using two approaches to estimate the local treatment effect, we show that this socialshaming tactic backfires and substantially increases the borrowers' default rate. Borrowers with better outside options for credit access and male borrowers respond more strongly after they are shamed socially. These findings are in general consistent with the negative reciprocity interpretation; angered borrowers retaliate by defaulting on their loans.