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Influencing Factors of Online P2P Lending Success Rate in China

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Abstract

The low success rate of lending is the main drawback of development of online P2P lending platforms in China. Based on the theory of social capital, this study analysed the influence factors of success rate of P2P lending platform in China, using social network method and multiple linear regression model. Soft information, such as bidding record, has been creatively employed to study the corresponding topics. Data used in this study comes from the largest online P2P lending platform in China. The results show that: compared with other influence factors, the bidding record has a more significant effect on the success rate, and the users depend more on the social capital; the bidding records reduce the asymmetry of information, and help increasing the success rate of lending and decreasing the cost of online P2P lending.

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Acknowledgements

This study was supported by the National Natural Science Foundation of China (Nos. 61309029, 61273293) and Ministry of Education Humanities Social Sciences Research Project (No. 11YJC880163)and Discipline Construction Foundation of Central University of Finance and Economics. We would like to thank Doctor Hu Yang for his valuable comment and suggestions.

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Authors and Affiliations

  1. Shanghai Nuclear Engineering Research and Design Institute, Shanghai, 200233, China

    Zhuopei Yang

  2. School of Information, Central University of Finance and Economics, Beijing, 100081, China

    Yanmei Zhang & Hengyue Jia

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  1. Zhuopei Yang
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  2. Yanmei Zhang
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  3. Hengyue Jia
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Correspondence to Yanmei Zhang.

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Yang, Z., Zhang, Y. & Jia, H. Influencing Factors of Online P2P Lending Success Rate in China. Ann. Data. Sci. 4, 289–305 (2017). https://doi.org/10.1007/s40745-017-0103-6

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  • DOI: https://doi.org/10.1007/s40745-017-0103-6

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