Homebuyers as Financial Creditors: A Study of Real Estate Inclusion under Bankruptcy Law

Abstract

Insolvency denotes the absence of resources to satisfy a loan obligation. It results from the inability of an individual, business organisation or association to meet its debt's time obligations. Conversely, bankruptcy is a legal procedure which takes place when a natural person or business entity cannot meet their outstanding obligations. Bankruptcy may be initiated through an application to the court, made by the parties who owe money to the creditor(s). However, there is considerable variation across nations regarding the procedures to be followed when making a bankruptcy application. This research investigates whether there is a gap in regard to intention and actual purchasing behaviour of green housing (GH) and suggests how to close that gap. The research model was based on the Theory of Planned Behaviour (TPB) and extended with environmentally related trust and concern for the environment. A survey was used to collect data from 450 individuals/future homebuyers located in Shandong, PR China in order to test the research model. The study results provide evidence that there exists a significant gap between intentions to purchase and actual purchasing behaviour in terms of GH consumption. In addition, the gap was positively moderated by trust in green (environmentally friendly) housing; however, concern for the environment did not significantly moderate the gap in this study. The authors conclude from a sustainable urban development perspective that enhancing consumers' trust in green housing will provide a means to enhance actual purchasing behaviour of green housing and ultimately support the greater introduction of green buildings into society.