A Study On The Investors Herding Behavior In China's P2P Lending Market With The Platform Participation Investment

Peer-to-peer lending,sometimes abbreviated P2P lending,refers to the practice of lending money to individuals or businesses using the Internet as an intermediary platform.With the development of Internet technology,P2P lending as a new type of venture capital financing model has been highly concerned by entrepreneurs and the business community.P2P online lending has also developed rapidly in the short term due to its many advantages such as quick and efficient,low threshold.The platform reduces the cost of borrowing transactions,broadens the financing channels for individuals as well as small and micro enterprises.P2P platform provides convenient,fast and high-return investment for investors with idle funds,which stimulates the fresh vitality of private lending.With the driven by Internet technology,the investment forms of the P2P platform have also undergone tremendous changes.Some of the mature platforms have participated in lending investments by launching wealth management products.Investors can earn relatively stable profits by purchasing shares of such financial plans.Interest income,and the platform will spread the funds to the debt portfolio.Many scholars have conducted extensive research on the P2P market.The existing research on domestic P2P lending is almost always aimed at the early development of the P2P market.After the platform participates in investment,the way investors invest on the platform has also changed,which means that the conclusions of the previous research are incorrect in the current situation.It may have changed.It is very necessary for us to analyze the investor behavior of the platform in current situation.This article introduces the background of this research firstly.Then it sorts out and summarizes the existing relevant literature and theories.Based on the results of previous studies,this paper establishes a panel data model.The model is from two perspectives:the non-platform automatic bidding and the manual selection of investors.This paper uses the data selected from Paipaidai platform to do the empirical test,and arranging the data of the three types of investment forms of the platform's automatic bidding,platform-launched products,and investor's personal selection criteria,respectively,for the investors of the P2P platform.The empirical study of the existence of behavior and its influencing factors.The research results show that under the current situation of platform participation,the P2P online loan platform has a rational herding effect,and risk factors and information asymmetry are no longer important signals for manual bidder investors.Finally,based on the research results obtained in this paper,we provide suggestions for the development of the platform and the management of regulatory agencies to promote the healthy and sustainable development of the entire industry.