Crowdfunding innovations in emerging economies: Risk and credit control in peer-to-peer lending network platforms
Crowdfunding innovations in emerging economies: Risk and credit control in peer-to-peer lending network platforms
Peer‐to‐peer (P2P) lending has emerged as a network form of crowdfunding that facilitates the loan originations outside the traditional banking model. In China, the combination of imperfect financial development and Internet technology has led to the widespread growth of a P2P network lending market. Using the theoretical lens of information asymmetry, we identify the key sources of risks facing contemporary Chinese P2P companies. Results from our two regression models reveal several factors that can be used as predictors for risk and financial management, including marriage, income, and house property. Our findings also show that collective inference by non‐expert lenders can accurately draw an inference from soft/nonstandard information. The construction of such a predictive system is important for ensuring the good operation of P2P network lending platforms in emerging economies.
Peer-to-peer (P2P) lending, chinese P2P, credit control, enterprises, information asymmetry, risk, soft/nonstandard information
355-361
Nisar, Tahir M.
6b1513b5-23d1-4151-8dd2-9f6eaa6ea3a6
Prabhakar, Guru
50ab5bb3-e9bb-4a0f-8668-8a8324d1a835
Torchia, Mariateresa
ca48f74b-a903-437e-b152-711b52bcf27e
May 2020
Nisar, Tahir M.
6b1513b5-23d1-4151-8dd2-9f6eaa6ea3a6
Prabhakar, Guru
50ab5bb3-e9bb-4a0f-8668-8a8324d1a835
Torchia, Mariateresa
ca48f74b-a903-437e-b152-711b52bcf27e
Nisar, Tahir M., Prabhakar, Guru and Torchia, Mariateresa
(2020)
Crowdfunding innovations in emerging economies: Risk and credit control in peer-to-peer lending network platforms.
Strategic Change, 29 (3), .
(doi:10.1002/jsc.2334).
Abstract
Peer‐to‐peer (P2P) lending has emerged as a network form of crowdfunding that facilitates the loan originations outside the traditional banking model. In China, the combination of imperfect financial development and Internet technology has led to the widespread growth of a P2P network lending market. Using the theoretical lens of information asymmetry, we identify the key sources of risks facing contemporary Chinese P2P companies. Results from our two regression models reveal several factors that can be used as predictors for risk and financial management, including marriage, income, and house property. Our findings also show that collective inference by non‐expert lenders can accurately draw an inference from soft/nonstandard information. The construction of such a predictive system is important for ensuring the good operation of P2P network lending platforms in emerging economies.
Text
PaperPeertoPeerLending
- Accepted Manuscript
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e-pub ahead of print date: 4 May 2020
Published date: May 2020
Keywords:
Peer-to-peer (P2P) lending, chinese P2P, credit control, enterprises, information asymmetry, risk, soft/nonstandard information
Identifiers
Local EPrints ID: 441000
URI: http://eprints.soton.ac.uk/id/eprint/441000
ISSN: 1086-1718
PURE UUID: 48697afb-79da-4aa1-80bf-c1d8699e812f
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Date deposited: 27 May 2020 16:53
Last modified: 17 Mar 2024 05:35
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Author:
Guru Prabhakar
Author:
Mariateresa Torchia
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