February 22, 2023 – Industry professionals are invited to contribute to academic research exploring risk attitudes and decision making in private real estate lending.
Researchers at Webster University have created a survey to identify the relationship between risk appetite and entrepreneurial orientation in private lending decisions. The University has partnered with the American Association of Private Lenders (AAPL) to deliver the survey to industry professionals.
The study will be the first test of a new cross-discipline paradigm between strategic management and finance. Private Lending is an increasingly significant sector within financial services but has largely been ignored in academia.
Leading the study are Doctorate in Management candidate Mark Fellhauer and project chair John Orr, an emeritus professor of management at Webster University.
“We are pleased to partner with Webster in this first foray of academic research into the private lending industry,” said Linda Hyde, managing director of AAPL. “We’ve worked closely with Mark and John in reviewing the survey and its applicability to private lending decision-making.”
The anonymous, 20-minute survey will be administered online through Qualtrics and includes a decision-making scenario on commercial real estate lending.
To participate in the survey, click here.
The survey will be open until April 30 with the initial summary of findings released at the end of May. Survey participants will the receive the summary by email. Participant emails will be quarantined from responses to preserve anonymity during data collection, analysis, and study publication.
By comparing decision-making and risk-tolerance in private lending to traditional banking and financing, the results will aid lenders with better:
- Hiring and training decisions. Private lenders who hire from the banking and finance sectors will have a better understanding of the spread and where additional training is needed to quickly acclimate employees.
- Understanding of the industry’s inherent bias toward certain types of risk tolerance and decisions. Lenders can analyze their own practices in context with the larger industry and position themselves for more advantageous decision-making.
- Insight into a growth industry. As banks face head winds and credit standards tighten, the report will provide academic analysis on industry structure.
In addition to contributing to graduate dissertation research, the results of the study will be used by Webster University professionals at academic conferences, in journal papers, and other associated academic presentations. In partnership with Webster, AAPL will share relevant findings with its membership.
The study has been approved by the Institutional Review Board (IRB), which reviews all academic research dealing with human subjects. The project has been vetted by the IRB for privacy protection, informed consent, and ethical considerations. Its control number is Webster IRB Application No. SP23-20.
About Webster University
Webster University is a private, non-profit institution founded in 1915. Through its main campus in St. Louis and network of some 50 urban, military and foreign campuses, Webster serves more than 10,000 students worldwide.
About the American Association of Private Lenders
The American Association of Private Lenders (AAPL) is the oldest and largest national organization safeguarding the continued viability and growth of the private real estate lending profession. Formed in 2009, the association identified needs for standardized best practices, ongoing support resources, and self-governance that perseveres today. AAPL membership includes private money lenders, mortgage fund managers, brokers, and service providers from across the United States.
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