Trust Mechanism On P2P Internet Lending Of China:Theory Analysis And Empirical Study

The Peer to Peer(P2P) Internet Lending market which develops rapidly in China reflects the huge folk demand of financing and investment.However, due to the information asymmetry,the problem of trust lack has become more and more serious. The passage based on information economics and the game theory, combines with relevant theoretical model of e-commerce trust mechanism, bulids the theoretical framework for the trust mechanism of the P2 P internet lending and divides it into the information disclosure mechanism,the risk guarantee mechanism and the reputation mechanism,and then researchs on the investors’ perception about the effectiveness of the reputation mechanism and the risk guarantee mechanism and the information disclosure mechanism to the formation process of the trust and influencing factors to the P2 P internet lending Platform and borrower from the perspective of investors. The results showed that: Under the situation of information asymmetry, the investors’ perception on the effectiveness of the reputation mechanism and risk guarantee mechanism has a significant effect on their behavior of trusting.The higher the reputation perceived by the investor is, the safer the risk guarantee method will be and more trust can be then produced. However, parts of investors pay excessive attentions to the ways of risk guarantee but ignore the assessment on the risk guarantee ability of P2 P platforms,thus leading to higher and higher operating leverage of the platforms, which can get more instead of inveators’ trust. In addition, the investors’ perception on the effectiveness of the information disclosure mechanism has a weaker effect on their behavior of trusting, even has a negative effect.This passage builds the theoretical framework for the trust mechanism of the P2 P internet lending in China, establishes the P2 P internet lending trust behavior driven by the theory model, verified the effectiveness of the model by the empirical data, and reveals the internal law of investors’ trading decision under the internet environment. The result is benefical for the regulator to make policy, the P2 P interner lending platform to design mechanism,borrower to improve successful rate and the investor to finance rationally.