Effectiveness Analysis Of Different Investment Strategies

With the continuous development of financial markets,financial innovations emerge in an endless stream,and Internet banking has become the hottest topic in today's financial sector.P2 P lending platform is a product of the Internet financial trend,which is a new financial model that has developed with the rise of Internet and private lending.The new financial model bypasses the high threshold set by the traditional indirect lending mode of bank loans and provides convenience for small and micro enterprise financing and personal credit card repayment.At the same time,P2 P lending platforms tap into the booming Internet technology,and integrate private banking into the lending platforms and makes personal information available to both the lending and the borrowing parties.These changes enable the borrowing and the lending parties to complete the lending transaction on a more transparent platform.P2P lending platforms can solve the financing difficulties of small and micro enterprises,and therefore many researches have focused on the financing end.However,with the frequent occurrence of P2 P default events,it is increasingly imperative to perform the research from the perspective of investors.In this light,this article explores the effectiveness of the two investment strategies: herd investment strategy and self-judgment strategy.In order to bring inspiration to Chinese investors,the researcher performs empirical analysis on the data from Prosper,the largest P2 P lending platform in the United States.The empirical regression is divided into two parts.The first is an empirical analysis on all bidding,specifically divided into two parts,each tender record as a unit(Logistic regression model)and each investor as a unit;the second is an empirical analysis on successful bidding record.In order to avoid the influence of sample selection bias,the researcher chooses to use the Heckman two stage model.The results show that both investment strategies have positive influence on the effectiveness of investment.In the study of bidding records,the herd investment strategy and the self-judgment investment strategy also have synergistic effect.