Research On The Influencing Factors Of Investor Decision-making In P2P Online Lending

In recent years,the personal assets of residents have been increasing,private capital reserves are huge,but the private capital appreciation ability is low.The main reason for this is that China’s existing investment channels are narrow,leaving a large number of private capital idle.P2P network lending is a new thing that has only developed in recent years.It is a rapid development and it is also an important channel for investors to choose to invest.It uses the interoperability of websites as a carrier,third-party protection as a means,and third-party payment as a means.In this way,the unfamiliar people can achieve full-scale networked investment and capital withdrawal,financing and repayment,borrowing and return,lending and repatriation.Behind the rapid development,various problems have also been exposed,such as the bankruptcy of the P2 P platform,the suspension of reorganization of the platform,and the difficulty of investors’ withdrawals.This paper studies the influencing factors of investors’ decision-making in the process of borrowing and lending in P2 P networks in China,and finds out the key factors affecting investors’ decision-making.This article makes use of the transaction data of China’s Renren network lending platform to conduct in-depth empirical research on investor decision-making issues,and draws the following four main conclusions: First,the fourth chapter of this paper empirically shows that orders between various economic regions are successful.There is a huge difference in rates.After controlling borrowing project information and borrower information,the difference has been reduced,but it is still statistically significant.This shows that there is regional preference in P2 P network lending transactions in China.Second,the further research in this paper shows that the success rate of orders in economically developed regions is higher than that in economically underdeveloped regions,and empirical evidence also shows that the order default rate in economically underdeveloped regions is not higher than the order default rate in developed regions.This shows that the investor’s regional preference behavior found in this paper is an irrational behavior.Thirdly,in the fifth chapter of the empirical study,we focused on introducing the local preference factor.The descriptive statistics shows that the borrower’s migration will affect the investor’s decision.This shows that there is a local preference in the P2 P network lending transaction.Further research shows that investors have local preferences and are more inclined to invest in borrowers who are homogenous to themselves.Fourth,on the basis of this,the further study of this paper finds that investors’ preference for this kind of local preference is influenced by behavioral factors rather than economic reasons.The results of this article have enriched the relevant research of Internet finance,and it is of practical significance for domestic and foreign scholars and investors to understand the Chinese P2 P network lending market.At the same time,some of the irrational results disclosed in this paper also provide some data support and theoretical basis for the P2 P network lending platform to more reasonably design its risk assessment model.