Matches in SemOpenAlex for { <https://semopenalex.org/work/W2178230953> ?p ?o ?g. }
- W2178230953 startingPage "242" @default.
- W2178230953 abstract "ABSTRACTWe investigate key factors affecting lenders' bidding strategies using three measurements for the popularity of loans: funding success, number of bids, and funding time. Also, we analyze borrowers' strategy in three groups according to the level of their expertise of online Peer-to-Peer lending: novice borrowers, pure borrowers, and mixed borrowers (as both borrower and lender). We use data from PPDai and find unanimous support for the interest rate, but partial evidence for the loan amount and the loan period. Particularly, we find that a larger loan amount could increase the probability of funding and attract more lenders. This implies that different lenders' strategies exist in the Chinese online P2P market where reliable individual credit information is unavailable. Information related to credit shows significant impact on all three measurements of the loan popularity. For borrowers, we find that different types of borrowers emphasize different components when designing a loan: mixed borrowers seem to put more weight on loan period while pure borrowers consider interest rate and loan amount more. Borrowers who have more expertise tend to propose a loan at a relatively lower cost. Our findings also suggest that Chinese borrowers, especially mixed borrowers, tend to utilize higher credibility to seek larger loans instead of lowering the cost of a loan.Keywords: Online P2P lending; Lender strategy; Borrower strategy; Borrower types; PPDai(ProQuest: ... denotes formulae omitted.)1. IntroductionThe peer-to-peer (P2P) lending concept is not at all new in itself, where lenders lend money to borrowers without an intermediary party involved [Herrero-Lopez 2009] .1 With the growth of the volume for e-commerce and the expansion of the online community, online P2P lending gains popularity as a convenient way of financing and probably a better alternative to the traditional banking system for some people. Online P2P lending basically extends the decision process based on personal credit onto the Internet [Bachmann et al. 2011; Collier & Hampshire 2010; Lin et al. 2009; Lin et al. 2013; Wang & Greiner 2011]. Since the first online P2P lending platform Zopa was established in the UK in 2005, this novel financial business has been growing rather rapidly in many other countries such as the USA, Denmark, Japan, and China. The worldwide online P2P lending business has seen continuous growth at a high speed: in April, 2014, an increase of 30% from March for Prosper (US), 40% for Smava (DE), 10% for Zopa (UK), and etc. (P2P-Banking.com).Despite the distinctive benefits of the online P2P lending, a high degree of information asymmetry in the market has been considered a substantial problem that hurts the market efficiency. This asymmetry exposes the lenders to a higher risk in their investment and tends to distort their bidding decisions [Chen & Han 2012; Yum et al. 2012]. However, other researchers argue that the market inefficiency induced by information asymmetry can, to an extent, be alleviated by other factors such as the disclosure of the borrower's financial and personal information or the development of mutual trust between the users. [Freedman & Jin 2008; Herzenstein et al. 2011; Iyer et al. 2009; Klafft 2008; Pope & Sydnor 2008; Ravina 2008; William et al. 2009]. We summarize the differences between traditional lending and P2P lending in Table 1.Along with the market efficiency issue, academic attention has been increasingly focused on the factor affecting the lenders' bidding strategies, which is mainly measured by the fund success rate. For example, researchers found a positive impact of the offered interest rate and the loan amount on increasing the funding rate [Barasinska & Schafer 2010; Freedman & Jin 2008; Pope & Sydnor 2008]. Also, others found credit scores and the financial history to have a strong impact on successful funding [Klafft 2008; William et al. …" @default.
- W2178230953 created "2016-06-24" @default.
- W2178230953 creator A5024618114 @default.
- W2178230953 creator A5069788341 @default.
- W2178230953 creator A5075993666 @default.
- W2178230953 date "2015-08-01" @default.
- W2178230953 modified "2023-09-23" @default.
- W2178230953 title "Lenders and Borrowers' Strategies in Online Peer-to-Peer Lending Market: An Empirical Analysis of Ppdai.com" @default.
- W2178230953 cites W11013317 @default.
- W2178230953 cites W1539896512 @default.
- W2178230953 cites W1555092484 @default.
- W2178230953 cites W1565956528 @default.
- W2178230953 cites W1965898788 @default.
- W2178230953 cites W1971432209 @default.
- W2178230953 cites W2004168223 @default.
- W2178230953 cites W2018188846 @default.
- W2178230953 cites W2029056003 @default.
- W2178230953 cites W2042731036 @default.
- W2178230953 cites W2056528415 @default.
- W2178230953 cites W2092718852 @default.
- W2178230953 cites W2092899467 @default.
- W2178230953 cites W2104287673 @default.
- W2178230953 cites W2110078189 @default.
- W2178230953 cites W2114362775 @default.
- W2178230953 cites W2130995195 @default.
- W2178230953 cites W2131773668 @default.
- W2178230953 cites W2135485260 @default.
- W2178230953 cites W2144540821 @default.
- W2178230953 cites W2153943092 @default.
- W2178230953 cites W2161693416 @default.
- W2178230953 cites W2167161877 @default.
- W2178230953 cites W2223267428 @default.
- W2178230953 cites W2341263736 @default.
- W2178230953 cites W2352105017 @default.
- W2178230953 cites W2362386127 @default.
- W2178230953 cites W2376973395 @default.
- W2178230953 cites W2393137611 @default.
- W2178230953 cites W3122946449 @default.
- W2178230953 cites W3123058726 @default.
- W2178230953 cites W3123728060 @default.
- W2178230953 cites W3123748919 @default.
- W2178230953 cites W3124284538 @default.
- W2178230953 cites W3124316565 @default.
- W2178230953 cites W3126098980 @default.
- W2178230953 cites W347860109 @default.
- W2178230953 cites W844837981 @default.
- W2178230953 cites W85293893 @default.
- W2178230953 hasPublicationYear "2015" @default.
- W2178230953 type Work @default.
- W2178230953 sameAs 2178230953 @default.
- W2178230953 citedByCount "3" @default.
- W2178230953 countsByYear W21782309532018 @default.
- W2178230953 countsByYear W21782309532020 @default.
- W2178230953 countsByYear W21782309532021 @default.
- W2178230953 crossrefType "journal-article" @default.
- W2178230953 hasAuthorship W2178230953A5024618114 @default.
- W2178230953 hasAuthorship W2178230953A5069788341 @default.
- W2178230953 hasAuthorship W2178230953A5075993666 @default.
- W2178230953 hasConcept C10138342 @default.
- W2178230953 hasConcept C107235782 @default.
- W2178230953 hasConcept C120314980 @default.
- W2178230953 hasConcept C144133560 @default.
- W2178230953 hasConcept C15744967 @default.
- W2178230953 hasConcept C158502994 @default.
- W2178230953 hasConcept C162118730 @default.
- W2178230953 hasConcept C162324750 @default.
- W2178230953 hasConcept C162853370 @default.
- W2178230953 hasConcept C175025494 @default.
- W2178230953 hasConcept C17744445 @default.
- W2178230953 hasConcept C199539241 @default.
- W2178230953 hasConcept C2229670 @default.
- W2178230953 hasConcept C2777764128 @default.
- W2178230953 hasConcept C2780224610 @default.
- W2178230953 hasConcept C2780586970 @default.
- W2178230953 hasConcept C41008148 @default.
- W2178230953 hasConcept C534932454 @default.
- W2178230953 hasConcept C556758197 @default.
- W2178230953 hasConcept C71387314 @default.
- W2178230953 hasConcept C77805123 @default.
- W2178230953 hasConcept C9233905 @default.
- W2178230953 hasConceptScore W2178230953C10138342 @default.
- W2178230953 hasConceptScore W2178230953C107235782 @default.
- W2178230953 hasConceptScore W2178230953C120314980 @default.
- W2178230953 hasConceptScore W2178230953C144133560 @default.
- W2178230953 hasConceptScore W2178230953C15744967 @default.
- W2178230953 hasConceptScore W2178230953C158502994 @default.
- W2178230953 hasConceptScore W2178230953C162118730 @default.
- W2178230953 hasConceptScore W2178230953C162324750 @default.
- W2178230953 hasConceptScore W2178230953C162853370 @default.
- W2178230953 hasConceptScore W2178230953C175025494 @default.
- W2178230953 hasConceptScore W2178230953C17744445 @default.
- W2178230953 hasConceptScore W2178230953C199539241 @default.
- W2178230953 hasConceptScore W2178230953C2229670 @default.
- W2178230953 hasConceptScore W2178230953C2777764128 @default.
- W2178230953 hasConceptScore W2178230953C2780224610 @default.
- W2178230953 hasConceptScore W2178230953C2780586970 @default.
- W2178230953 hasConceptScore W2178230953C41008148 @default.
- W2178230953 hasConceptScore W2178230953C534932454 @default.
- W2178230953 hasConceptScore W2178230953C556758197 @default.