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Influence of nonspecific factors on the interest rate of online peer-to-peer microloans in China

Author

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  • GUO, Jianfeng
  • LIU, Xiaojie
  • CUI, Changnan
  • GU, Fu

Abstract

This work explores the influence of nonspecific factors, including internal parameters such as term, volume, and participants, and external ones such as risk-free interest rates, private lending interest rates, and online attention, on the average interest rate of peer-to-peer (P2P) microloans in China. Empirical findings reveal that with a positive coefficient, the private lending interest rate is the most significant influencing factor. China's P2P market was changed on June 15, 2018; the effect of the private lending interest rate turned insignificant, and the negative coefficient of the loan term, short-term risk-free interest rate, and online attention became positive.

Suggested Citation

  • GUO, Jianfeng & LIU, Xiaojie & CUI, Changnan & GU, Fu, 2021. "Influence of nonspecific factors on the interest rate of online peer-to-peer microloans in China," Finance Research Letters, Elsevier, vol. 41(C).
    • Handle: RePEc:eee:finlet:v:41:y:2021:i:c:s1544612320316536
    DOI: 10.1016/j.frl.2020.101839
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    1. Rendao Ye & Ya Lin, 2023. "Relationship Between Interest Rate and Risk of P2P Lending in China Based on the Skew-Normal Panel Data Model," SAGE Open, , vol. 13(4), pages 21582440231, October.

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