Determinants of Lending Behaviors in Online P2P Lending Market:Based on the Lending Data of PPDai.com

Abstract

Abstract:

Online peer-to-peer (P2P) lending has experienced rapid growth since its inception.It satisfies the loan demand of small micro enterprises and low-income borrowers.In addition,it provides good investment for idle social funds.This study collects 51,458 listing data from PPDai.com to explore the main influential factors of lending behaviors using binary logistic regression models.Furthermore,we test the effects of P2P platform's credit evaluation mechanism on P2P lending behaviors.These results show that risk rating,review,photos,borrower's identity and age have significant impact on P2P lending.We also find that borrowing credit score,lending credit score and identity verification have a positive effect on lending behaviors.The results provide a related theory basis for investors' decision-making and the improvement of P2P network credit platform.The findings have significant managerial implications on the sustainable development of online P2P lending pattern.

Key words: online peer-to-peer lending, Internet financial, risk rating, credit evaluation mechanism, lending behavior

Liu Qiaoli, Wen Haoyu, Qin Hong. Determinants of Lending Behaviors in Online P2P Lending Market:Based on the Lending Data of PPDai.com[J]. , 2017, 29(6): 13-22,52.

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