- Title
- An empirical study of Peer-to-Peer lending websites in China
- Creator
- Chua, Tsz Lan
- Resource Type
- thesis
- Date
- 2018
- Description
- Professional Doctorate - Doctor of Business Administration (DBA)
- Description
- The Peer-to-Peer (P2P) lending market in China has expanded significantly. The purpose of this study is to predict the key determinants which affect the average interest rate and default risk, the two major components of the P2P lending market in China. Research models with 26 hypotheses were developed. A sample of 350 lending transactions was chosen from "Wangdaizhijia", one of China’s largest public P2P lending databases. Regression analysis, correlations, and t-tests are conducted. Nine hypotheses are accepted, indicating that the P2P lending market in China is different from its Western counterparts. The major findings are that investor concentration is positively correlated with the average interest rate on the P2P lending platforms (P2P lenders), and the listed amount of the loan is positively correlated with the default risk on the P2P lending platform. Also, registered capital, outstanding loan payable in 60 days, listed amount of the loan and operation time have group differences between high and low performing P2P lenders. The identification of a negative relationship between the use of cash custodian and average interest rate and a positive relationship between listed amount of the loan and default risk provides strong support for the Chinese government to implement new measures for a compulsory use of cash custodian and a loan cap for P2P lending platforms, in order to achieve long-term sustainability and ensure stable and healthy development of the P2P lending industry in China. This dissertation served as a pioneer study to use a new framework to predict factors affecting the average interest rate and default risk in the Chinese P2P lending context. This study should be useful to the practitioners and may inspire future researchers to develop a more comprehensive research model.
- Subject
- P2P; China; average interest rate; default risk; Peer-to-Peer Lending
- Identifier
- http://hdl.handle.net/1959.13/1394441
- Identifier
- uon:33694
- Rights
- Copyright 2018 Tsz Lan Chua
- Language
- eng
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| Thumbnail | File | Description | Size | Format | |||
|---|---|---|---|---|---|---|---|
| View Details Download | ATTACHMENT01 | Thesis | 2 MB | Adobe Acrobat PDF | View Details Download | ||
| View Details Download | ATTACHMENT02 | Abstract | 161 KB | Adobe Acrobat PDF | View Details Download |