IDEAS home Printed from https://ideas.repec.org/a/spr/fininn/v1y2015i1d10.1186_s40854-015-0010-9.html
   My bibliography  Save this article

Exploring the critical factors influencing online lending intentions

Author

Listed:
  • Peng Wang

    (Southwestern University of Finance and Economics)

  • Haichao Zheng

    (Southwestern University of Finance and Economics)

  • Dongyu Chen

    (Soochow University)

  • Liangchao Ding

    (Soochow University)

Abstract

Background Online lending (P2P lending) is a type of internet finance mainly used to meet the financial needs of small and medium-sized enterprises and groups of individuals. It is a supplement to the traditional financial system. Method This paper uses PPDai.com—the most influential online lending platform in China—as a research object to study the leading factors that affect lenders’ loan trust and perception of information asymmetry. It also studies the impacts of these factors on lending intention. Results The results of this study show that the lending intention is mainly influenced by trust; perceived information asymmetry will affect trust, but it will not have a direct impact on lending intention. Trust is significantly affected by the borrowers’ reputation and information integrity. Information asymmetry has various causes, including structural assurance and legitimacy. This perception of information asymmetry significantly prevents the further development of online P2P lending. Conclusion The findings in this research imply that there are profound differences between online lending and online purchasing, thus the results obtained in the traditional e-commerce market cannot be applied in the field of online lending without verification.

Suggested Citation

  • Peng Wang & Haichao Zheng & Dongyu Chen & Liangchao Ding, 2015. "Exploring the critical factors influencing online lending intentions," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 1(1), pages 1-11, December.
    • Handle: RePEc:spr:fininn:v:1:y:2015:i:1:d:10.1186_s40854-015-0010-9
    DOI: 10.1186/s40854-015-0010-9
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1186/s40854-015-0010-9
    File Function: Abstract
    Download Restriction: no
    File URL: https://libkey.io/10.1186/s40854-015-0010-9?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Herzenstein, Michal & Dholakia, Utpal M. & Andrews, Rick L., 2011. "Strategic Herding Behavior in Peer-to-Peer Loan Auctions," Journal of Interactive Marketing, Elsevier, vol. 25(1), pages 27-36.
    2. Paul A. Pavlou & David Gefen, 2004. "Building Effective Online Marketplaces with Institution-Based Trust," Information Systems Research, INFORMS, vol. 15(1), pages 37-59, March.
    3. Seth Freedman & Ginger Zhe Jin, 2008. "Do Social Networks Solve Information Problems for Peer-to-Peer Lending? Evidence from Prosper.com," Working Papers 08-43, NET Institute.
    4. Mingfeng Lin & Nagpurnanand R. Prabhala & Siva Viswanathan, 2013. "Judging Borrowers by the Company They Keep: Friendship Networks and Information Asymmetry in Online Peer-to-Peer Lending," Management Science, INFORMS, vol. 59(1), pages 17-35, August.
    5. Juanjuan Zhang & Peng Liu, 2012. "Rational Herding in Microloan Markets," Management Science, INFORMS, vol. 58(5), pages 892-912, May.
    6. Jefferson Duarte & Stephan Siegel & Lance Young, 2012. "Trust and Credit: The Role of Appearance in Peer-to-peer Lending," The Review of Financial Studies, Society for Financial Studies, vol. 25(8), pages 2455-2484.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Mohammad Tariqul Islam Khan & Gan Han Yee & Gerald Goh Guan Gan, 2023. "Antecedents of Intention to Use Online Peer-to-Peer Platform in Malaysia," Vision, , vol. 27(5), pages 680-694, November.
    2. Rayenda Khresna Brahmana & Maria Kontesa & Josephine Tan-Hwang Yau, 2024. "Does information seeking moderate the relationship between financial loan inclusion and Fintech P2P lending?," Journal of Financial Services Marketing, Palgrave Macmillan, vol. 29(1), pages 171-185, March.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Xueru Chen & Xiaoji Hu & Shenglin Ben, 2021. "How do reputation, structure design and FinTech ecosystem affect the net cash inflow of P2P lending platforms? Evidence from China," Electronic Commerce Research, Springer, vol. 21(4), pages 1055-1082, December.
    2. Dongyu Chen & Xiaolin Li & Fujun Lai, 2023. "Shill bidding in lenders’ eyes? A cross-country study on the influence of large bids in online P2P lending," Electronic Commerce Research, Springer, vol. 23(2), pages 1089-1114, June.
    3. Teply, Petr & Polena, Michal, 2020. "Best classification algorithms in peer-to-peer lending," The North American Journal of Economics and Finance, Elsevier, vol. 51(C).
    4. Carla Martínez-Climent & Ana Zorio-Grima & Domingo Ribeiro-Soriano, 2018. "Financial return crowdfunding: literature review and bibliometric analysis," International Entrepreneurship and Management Journal, Springer, vol. 14(3), pages 527-553, September.
    5. Oleksandr Talavera & Haofeng Xu, 2018. "Role of Verification in Peer-to-Peer Lending," Working Papers 2018-25, Swansea University, School of Management.
    6. Benjamin Käfer, 2016. "Peer-to-Peer Lending – A (Financial Stability) Risk Perspective," MAGKS Papers on Economics 201622, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    7. Belleflamme, Paul & Omrani, Nessrine & Peitz, Martin, 2015. "The economics of crowdfunding platforms," Information Economics and Policy, Elsevier, vol. 33(C), pages 11-28.
    8. Dongyu Chen & Xiaolin Li & Fujun Lai, 2017. "Gender discrimination in online peer-to-peer credit lending: evidence from a lending platform in China," Electronic Commerce Research, Springer, vol. 17(4), pages 553-583, December.
    9. Yingxiu Zhao & Wei Zhang & Xiangyu Kong, 2019. "Dynamic Cross-Correlations between Participants’ Attentions to P2P Lending and Offline Loan in the Private Lending Market," Complexity, Hindawi, vol. 2019, pages 1-8, December.
    10. Andreas Hoegen & Dennis M. Steininger & Daniel Veit, 2018. "How do investors decide? An interdisciplinary review of decision-making in crowdfunding," Electronic Markets, Springer;IIM University of St. Gallen, vol. 28(3), pages 339-365, August.
    11. Ninghua Du & Lingfang Li & Tian Lu & Xianghua Lu, 2020. "Prosocial Compliance in P2P Lending: A Natural Field Experiment," Management Science, INFORMS, vol. 66(1), pages 315-333, January.
    12. Foster, Joshua, 2019. "Thank you for being a friend: The roles of strong and weak social network ties in attracting backers to crowdfunded campaigns," Information Economics and Policy, Elsevier, vol. 49(C).
    13. Samuel Ribeiro-Navarrete & Juan Piñeiro-Chousa & M. Ángeles López-Cabarcos & Daniel Palacios-Marqués, 2022. "Crowdlending: mapping the core literature and research frontiers," Review of Managerial Science, Springer, vol. 16(8), pages 2381-2411, November.
    14. Chen, Shiyi & Gu, Yan & Liu, Qingfu & Tse, Yiuman, 2020. "How do lenders evaluate borrowers in peer-to-peer lending in China?," International Review of Economics & Finance, Elsevier, vol. 69(C), pages 651-662.
    15. Yuho Chung & Yiwei Li & Jianmin Jia, 2021. "Exploring embeddedness, centrality, and social influence on backer behavior: the role of backer networks in crowdfunding," Journal of the Academy of Marketing Science, Springer, vol. 49(5), pages 925-946, September.
    16. de Roure, Calebe & Pelizzon, Loriana & Tasca, Paolo, 2016. "How does P2P lending fit into the consumer credit market?," Discussion Papers 30/2016, Deutsche Bundesbank.
    17. Käfer Benjamin, 2018. "Peer-to-Peer Lending – A (Financial Stability) Risk Perspective," Review of Economics, De Gruyter, vol. 69(1), pages 1-25, April.
    18. Yanhong Guo & Shuai Jiang & Wenjun Zhou & Chunyu Luo & Hui Xiong, 2021. "A predictive indicator using lender composition for loan evaluation in P2P lending," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 7(1), pages 1-24, December.
    19. Xiaoyu Li & Jiahong Yuan & Yan Shi & Zilai Sun & Junhu Ruan, 2020. "Emerging Trends and Innovation Modes of Internet Finance—Results from Co-Word and Co-Citation Networks," Future Internet, MDPI, vol. 12(3), pages 1-14, March.
    20. Qizhi Tao & Yizhe Dong & Ziming Lin, 2017. "Who can get money? Evidence from the Chinese peer-to-peer lending platform," Information Systems Frontiers, Springer, vol. 19(3), pages 425-441, June.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:fininn:v:1:y:2015:i:1:d:10.1186_s40854-015-0010-9. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.