Is there an effective reputation mechanism in peer-to-peer lending? Evidence from China

Ding, Jie; Huang, Jinbo; Li, Yong; Meng, Ming

doi:10.1016/j.frl.2018.09.015

Cited by 48 publications

(31 citation statements)

References 20 publications

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“…However, that research was also not validated by the traditional peer-review process. As China's Internet-based consumer finance companies have been developing very fast recently, a few studies have begun to focus on one niche area, P2P lending, examining the relations between government affiliation and the development of China's P2P lending platforms (Jiang et al 2018); the risks associated with P2P lending platforms (Li et al 2016); punctuation's effect on readability in the P2P lending market (Chen et al 2018); and the reputation mechanism in P2P lending (Ding et al 2019).…”

Section: September 2018mentioning

confidence: 99%

Chinese consumer finance: a primer

Liu¹

2020

Front. Bus. Res. China

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Chinese consumer finance has been booming recently, especially since 2014. However, research on this topic is scant. This study presents an updated analysis, providing original, significant contributions for academics, investors, and policymakers. We explore five perspectives: (1) macroeconomics: policies adopted by the Chinese government to enhance economic growth through promoting personal consumption; (2) financial market: China's different types of consumer finance institutions and their financing; (3) consumers: improvements in financial inclusion and consumer protections; (4) regulations in the context of supply-side structural reforms; and (5) potential areas for future academic research.

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Section: September 2018mentioning

confidence: 99%

Chinese consumer finance: a primer

Liu¹

2020

Front. Bus. Res. China

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“…In addition to the above hard information and soft information, the amount of personal information disclosure (Herzenstein et al ., ; Michels, ; Li, ), the borrower's previous performance (Ding et al ., ), the real estate price of the borrower's location (Ramcharan and Crowe, ) and the degree of financial development (Butler et al ., ) affect the success probability and interest cost of borrowing.…”

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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“…Lin et al (2017) and J. Ding et al (2018) found a negative relationship between working experience and probability of default.…”

Section: Years Of Employmentmentioning

confidence: 96%

“…To develop methodology for assessment of borrowers' default determinants in p2p platforms. 4. To apply the methodology of assessment of borrowers' default determinants in the Lithuanian p2p platforms.…”

Section: Introductionmentioning

confidence: 99%