Study on Farmers' Microcredit Risk Cognition and Response Behavior

Yilin Li

doi:10.54691/515j3m26

Authors

Yilin Li

DOI:

https://doi.org/10.54691/515j3m26

Keywords:

Microfinance, Farmer Risk Perception, Behavioral Finance, Theory of Planned Behavior, Rural Finance.

Abstract

As an important financial tool to support the development of "agriculture, rural areas and farmers", microcredit has played a positive role in alleviating farmers' capital shortages and promoting agricultural production and rural economic development. However, in the actual operation process, farmers generally have problems such as insufficient risk awareness and lack of coping mechanisms in their credit behavior, which easily lead to risk events such as credit default and fund mismatch. Based on the theory of planned behavior, information asymmetry theory and behavioral finance, this paper constructs an analytical framework for farmers' microcredit risk cognition and coping behavior, systematically explores farmers' cognitive level of environmental risk, credit risk and operational risk, and identifies their behavioral paths and influencing mechanisms in risk coping. Through literature review and theoretical analysis, this paper finds that existing research mainly focuses on risk control of financial institutions, and pays insufficient attention to individual behavior of farmers, especially in the western region. The research of this paper not only enriches the theoretical exploration in the field of rural financial risk behavior, but also provides a reference for the formulation of more effective risk intervention policies.

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