Does university reputation matter? Evidence from peer-to-peer lending

Li, Jianwen; Hu, Jinyan

doi:10.1016/j.frl.2019.04.004

Cited by 17 publications

(10 citation statements)

References 27 publications

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“…Chen et al (2020) Gender Ding et al (2019) Historical loan performance Duarte et al (2012) Appearance Freedman and Jin (2017) Social network J. Li and Hu (2019) University reputation J. Jiang et al (2019) Residential district Lin et al (2013) Friendship Pope and Sydnor (2011) Race Shi et al (2019), Zhu (2018) Platform guarantee mechanism Xu and Chau (2018) Lender-borrower communication Wei and Lin (2017) Loan pricing structure Theme 2: Prediction of ex-post repayment performance Traditional lending Desai et al (1996), Lee et al (2006) Test the predictive accuracy of existing credit rating models Lee et al (2002), Malhotra and Malhotra (2002) Create loan assessment models Noh et al (2005) Develop new models that predict the credit risk of individual borrowers P2P lending Guo et al (2016), C. , Z. Li et al…”

Section: Categorymentioning

confidence: 99%

“…Chen, Huang, & Ye, 2020), historical loan performance (Ding, Huanga, Li, & Meng, 2019), appearance (Duarte et al, 2012), social network (Freedman & Jin, 2017), university reputation (J. Li & Hu, 2019), residential district (J. Jiang, Liu, & Lu, 2019), friendship (Lin, Prabhala, & Viswanathan, 2013), race (Pope & Sydnor, 2011), platform guarantee mechanism (Shi, Jin, & He, 2019;Zhu, 2018), lender-borrower communication (Xu & Chau, 2018), and loan pricing structure (Wei & Lin, 2017).…”

Section: Review Of Related Literaturementioning

confidence: 99%

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Can investors’ collective decision-making evolve? Evidence from Peer-to-Peer lending markets

Kim

2021

Preprint

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This study tries to identify the accuracy of individual investors' capability to predict a borrower’s creditworthiness in peer-to-peer lending markets and examine whether their ability is likely to evolve over time. The results of this study show that there is no significant difference between the predictive power of investors' ex-ante funding decision model and that of the ex-post repayment model over a borrower’s repayment performance. Furthermore, the predictive power of investors' ex-ante funding decision over a borrower’s repayment performance is shown to improve over time . It is also found that the main reason why investors’ predictive power improve over time is because investors can assess more accurately the information provided by the platform operator and describe the borrower's characteristics. The results of this study are important as they confirm the possibility of optimizing and streamlining the P2P lending market, through the evolution of investors’ decision making.

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Section: Categorymentioning

confidence: 99%

Section: Review Of Related Literaturementioning

confidence: 99%

Can investors’ collective decision-making evolve? Evidence from Peer-to-Peer lending markets

Kim

2021

Preprint

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show abstract

“…). In the P2P market, disclosure, such as mandatory or voluntary disclosure, hard information or soft information, also has a great influence on mitigating information asymmetry and adverse selection (Zhu, ; Li and Hu, ).…”

Section: Literature Reviewmentioning

confidence: 99%

Seeing is important: the usefulness of video information in P2P

Wang

Zhang

2019

Accounting & Finance

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P2P lending is an important research subject of rising internet finance research. This paper uses unique data from Renrendai, a leading platform in China, to test the influence of video information on P2P lending behavior. Results suggest that, first, the lower the borrower's credit rating is, the more likely they are to provide video information. Second, compared to the video-information-absent borrowers, the otherwise borrowers can get easier access to a loan and offer a lower interest rate. These results indicate that compared to text messages, video information can increase the borrower's creditworthiness and reduce the transaction risk. Thereupon seeing is important in online P2P lending. Third, when the borrower's credit rating is lower, the video effect is significant. The study makes sense in terms of the enrichment of P2P lending literature and the enlightenment on decision-making of both lenders and borrowers.

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Section: Categorymentioning

confidence: 99%

Can investors’ collective decision-making evolve? Evidence from peer-to-peer lending markets

Kim¹

2021

Electron Commer Res

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This study tries to identify the accuracy of individual investors' capability to predict a borrower's creditworthiness in peer-to-peer lending markets and examine whether their ability is likely to evolve over time. The results of this study show that there is no signi cant difference between the predictive power of investors' ex-ante funding decision model and that of the ex-post repayment model over a borrower's repayment performance. Furthermore, the predictive power of investors' ex-ante funding decision over a borrower's repayment performance is shown to improve over time . It is also found that the main reason why investors' predictive power improve over time is because investors can assess more accurately the information provided by the platform operator and describe the borrower's characteristics. The results of this study are important as they con rm the possibility of optimizing and streamlining the P2P lending market, through the evolution of investors' decision making.Research question 1: How different is the predictive power on a borrower's default of the individual investors' ex-ante funding decision model from that of the ex-post repayment model? After identifying suboptimal levels of investors' ability to make collective funding decisions, this study's primary research purpose is to determine whether the quality of the decision can be improved as the market structure evolves over time. Therefore, we present a second research question as follows.Research question 2: Do investors' predictive powers improve as market structures evolve over time?In addition, it will also be important to identify what the speci c improvement factors are if investors' collective decision-making evolves. To this end, the study also seeks to further clarify what investor information is improving the judgment among the borrowers' various information. The study also presents the following research questions in relation to it.Research question 3: If investors' predictive power evolves, what is the reason for it?While the investors' ex-ante funding decision primarily determines whether the funding is approved or not, the fundamental criterion for investors' decisionmaking is whether or not the borrower will repay the money loaned on time (

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Does university reputation matter? Evidence from peer-to-peer lending

Cited by 17 publications

References 27 publications

Can investors’ collective decision-making evolve? Evidence from Peer-to-Peer lending markets

Can investors’ collective decision-making evolve? Evidence from Peer-to-Peer lending markets

Seeing is important: the usefulness of video information in P2P

Can investors’ collective decision-making evolve? Evidence from peer-to-peer lending markets

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