[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"detail-sidebar-cat-1-en-105":3,"doc-seo-280282-105":53,"doc-detail-280282-en":126},{"code":4,"msg":5,"data":6},0,"success",[7,14,19,24,29,34,39,44,49],{"id":8,"doc_module":9,"doc_module_name":10,"category_name":11,"show_sort_weight":12,"slug":13},11,1,"Template","Presentations",90,"presentations",{"id":15,"doc_module":9,"doc_module_name":10,"category_name":16,"show_sort_weight":17,"slug":18},12,"Resumes",80,"resumes",{"id":20,"doc_module":9,"doc_module_name":10,"category_name":21,"show_sort_weight":22,"slug":23},14,"Invoices",70,"invoices",{"id":25,"doc_module":9,"doc_module_name":10,"category_name":26,"show_sort_weight":27,"slug":28},15,"Posters",60,"posters",{"id":30,"doc_module":9,"doc_module_name":10,"category_name":31,"show_sort_weight":32,"slug":33},16,"Social Media",50,"social-media",{"id":35,"doc_module":9,"doc_module_name":10,"category_name":36,"show_sort_weight":37,"slug":38},17,"Forms",40,"forms",{"id":40,"doc_module":9,"doc_module_name":10,"category_name":41,"show_sort_weight":42,"slug":43},18,"Letters",30,"letters",{"id":45,"doc_module":9,"doc_module_name":10,"category_name":46,"show_sort_weight":47,"slug":48},21,"Paper Templates",5,"papers-templates",{"id":50,"doc_module":9,"doc_module_name":10,"category_name":51,"show_sort_weight":4,"slug":52},158,"General","general-158",{"code":4,"msg":54,"data":55},"ok",{"site_id":56,"language":57,"slug":58,"title":59,"keywords":60,"description":61,"schema_data":62,"social_meta":119,"head_meta":121,"extra_data":123,"updated_unix":125},105,"en","how-does-bonus-payment-affect-the-demand-for-auto-loans-and-their-delinquency","How Does Bonus Payment Affect the Demand for Auto Loans and Their Delinquency?","","We examine how receiving a lump-sum bonus changes consumers’ demand for auto loans and the risk of subsequent delinquency. Using a large consumer panel with credit and employment information, the analysis controls for income changes and shows that bonuses raise auto-loan demand by 19.4%. The same loans carry higher risk: 60- and 90-day delinquency increase by 12.9% and 20.8% after controlling for credit score and income. Salary increases raise demand but not delinquency, and the delinquency rise is concentrated among consumers with lower financial resources.",{"@graph":63,"@context":118},[64,80,101],{"@type":65,"itemListElement":66},"BreadcrumbList",[67,71,74,77],{"item":68,"name":69,"@type":70,"position":9},"https://docshare.wps.com","Home","ListItem",{"item":72,"name":10,"@type":70,"position":73},"https://docshare.wps.com/template/",2,{"item":75,"name":51,"@type":70,"position":76},"https://docshare.wps.com/template/general/",3,{"item":78,"name":59,"@type":70,"position":79},"https://docshare.wps.com/template/how-does-bonus-payment-affect-the-demand-for-auto-loans-and-their-delinquency/280282/",4,{"url":78,"name":59,"@type":81,"image":82,"author":87,"headline":59,"publisher":90,"fileFormat":93,"inLanguage":57,"description":61,"dateModified":94,"datePublished":95,"encodingFormat":93,"isAccessibleForFree":96,"interactionStatistic":97},"DigitalDocument",{"url":83,"@type":84,"width":85,"height":86},"https://docshare.wps.com/thumbnails/how-does-bonus-payment-affect-the-demand-for-auto-loans-and-their-delinquency/280282.png","ImageObject",442,249,{"name":88,"@type":89},"Oliver Hayes","Person",{"url":68,"name":91,"@type":92},"DocShare","Organization","application/pdf","2026-09-20","2026-09-16",true,{"@type":98,"interactionType":99,"userInteractionCount":76},"InteractionCounter",{"@type":100},"ViewAction",{"@type":102,"mainEntity":103},"FAQPage",[104,110,114],{"name":105,"@type":106,"acceptedAnswer":107},"How does a lump-sum bonus affect consumers’ demand for auto loans?","Question",{"text":108,"@type":109},"After controlling for income changes, receiving a bonus increases auto loan demand by 19.4%. The paper explains this through income effects plus improved liquidity and consumption propensity.","Answer",{"name":111,"@type":106,"acceptedAnswer":112},"Does receiving a bonus also increase the risk of delinquency on auto loans?",{"text":113,"@type":109},"Yes. Bonus-induced auto loans show higher delinquency risk: 60-day and 90-day delinquency rates rise by 12.9% and 20.8% after controlling for credit score and income.",{"name":115,"@type":106,"acceptedAnswer":116},"How is the delinquency impact of bonuses different from the impact of base salary increases?",{"text":117,"@type":109},"An increase in base salary raises auto loan demand but does not increase the delinquency rate. The paper also finds that delinquency for bonus-induced loans increases mainly for consumers with lower financial resources.","https://schema.org",{"og:url":78,"og:type":120,"og:title":59,"og:site_name":91,"og:description":61},"article",{"robots":122,"canonical":78},"index,follow",{"doc_id":124,"site_id":56},280282,1789536194,{"code":4,"msg":5,"data":127},{"doc_id":124,"user_id":128,"nickname":88,"user_avatar":129,"doc_module":9,"category_id":50,"category_name":51,"doc_title":59,"doc_description":61,"doc_content":130,"file_id":131,"file_url":132,"file_type":133,"file_size":134,"view_count":9,"is_deleted":4,"is_public":9,"is_downloadable":9,"audit_status":9,"page_count":135,"language":136,"language_code":57,"site_id":56,"html_lang":57,"table_of_contents":137,"faqs":138,"seo_title":139,"seo_description":61,"update_tm":125,"read_time":30},687207020761,"https://ap-avatar.wpscdn.com/davatar_155a257f0dc6eb9ab79c44ca47cae57d","How Does Bonus Payment Affect the Demand for Auto Loans and Their Delinquency?  \nZhenling Jiang, Dennis J. Zhang, and Tat Chan1  \nAbstract  \nWe study how receiving a lump-sum bonus changes the demand for auto loans and the risk of future delinquency. Unlike traditional consumer products, auto loans have a long-term impact on consumers’ financial state because of the monthly payment obligation. Using a large consumerpanel data set of credit and employment information, we find that, after controlling for the income change, receiving a bonus increases auto loan demand by 19.4 percent. These loans, however, are associated with a higher risk; the 60-and 90-day delinquency rates increase by 12.9 and 20.8 percent respectively, after controlling for credit score and income. In contrast, while receiving an increase in base salary also leads to higher demand for auto loans, it does not increase the delinquency rate. Furthermore, we find that delinquency for bonus-induced loans only increases for consumers with lower financial resources. For welfare and policy implications, evidence suggests that the higher delinquency risk is costly for both consumers and financing institutions, but financing institutions have not taken into account the increased risk when setting the loan terms.  \n1 This paper represents the views of the authors only and not Equifax, Inc. We are deeply grateful to Equifax, Inc. for supporting the research and allowing us access to their data. We thank Naser Hamdi and Stephanie Cummings for valuable comments. Zhenling Jiang, J. Mack Robinson College of Business, Georgia State University, [zjiang7@gsu.edu. Dennis](zjiang7@gsu.edu. Dennis) J. Zhang, Olin Business School, Washington University in St. Louis, [denniszhang@wustl.edu](denniszhang@wustl.edu. Tat Chan)[.](denniszhang@wustl.edu. Tat Chan)[ Tat Chan](denniszhang@wustl.edu. Tat Chan), Olin Business School, Washington University in St. Louis, [chan@wustl.edu](chan@wustl.edu).  \n1. Introduction  \nBonuses are a common component of employee compensation in the U.S. It is estimated that 63 percent of firms offer annual bonuses to recognize their employees’ contribution.2 After the corporate tax cut in 2017, many companies, such as AT&T and The Home Depot, chose to pay bonuses to their employees with the tax savings.3 The size of the bonus is significant. Based on data from Equifax, Inc., the average bonus payment was close to $5,000 in 2015, which is equivalent to 6.5 percent of an employee’s annual income. Unlike salaries or commissions, which usually are paid monthly, a bonus is a lump-sum payment typically paid once a year.  \nHow does a consumer respond to bonus payments by changing her purchase behavior, and what are the long-term consequences of the purchases? This paper seeks to answer these questions by empirically investigating the impact of bonus on the demand for auto loans and the future delinquency. Buying a car is a big-ticket purchase that very often has to be financed by an auto loan. Since a bonus payment significantly boosts an individual’s income, it is not surprising that it may lead to a higher demand for auto loans. On top of the income effect, the payment also reduces liquidity constraints, which can lead to higher consumption (e.g., Johnson et al. 2006, Agarwal et al. 2007). The consumer may also perceive the bonus as a gain from the current wealth state and thus have a higher consumption propensity out of the bonus income (e.g., Epleyet al. 2006, Milkman and Beshears 2009, Hastings and Shapiro 2018), which can increase auto loan demand even more. Despite the potential unique impact of bonus and its prevalence, not much work has been done in the marketing and economics literature to understand how it affects consumers’ demand for loans. Another unique feature of our study is that demand for auto loans  \n2 Society for Human Resource Management. 2018 Employee Benefits: The Evolution of Benefits. [https://www.shrm.org/hr](https://www.shrm.org/hr)toda","cbCail1vkxFlq3Sz","https://ap.wps.com/l/cbCail1vkxFlq3Sz","pdf",913466,45,"English","# Abstract\n# Introduction\n## Bonus prevalence and structure\n## Research questions and motivation","[{\"question\":\"How does a lump-sum bonus affect consumers’ demand for auto loans?\",\"answer\":\"After controlling for income changes, receiving a bonus increases auto loan demand by 19.4%. The paper explains this through income effects plus improved liquidity and consumption propensity.\"},{\"question\":\"Does receiving a bonus also increase the risk of delinquency on auto loans?\",\"answer\":\"Yes. Bonus-induced auto loans show higher delinquency risk: 60-day and 90-day delinquency rates rise by 12.9% and 20.8% after controlling for credit score and income.\"},{\"question\":\"How is the delinquency impact of bonuses different from the impact of base salary increases?\",\"answer\":\"An increase in base salary raises auto loan demand but does not increase the delinquency rate. The paper also finds that delinquency for bonus-induced loans increases mainly for consumers with lower financial resources.\"}]","How Does Bonus Payment Affect the Demand for Auto Loans and Their Delinquency? | PDF"]