 The role of job titles in online peer-to-peer lending: An empirical investigation on skilled borrowersZagdbazar Davaadorj, Bolortuya Enkhtaivan and Wenling Lu Journal of Behavioral and Experimental Finance, 2024, vol. 41, issue C Abstract: We examine the role of borrowers' job titles in the online peer-to-peer (P2P) lending market. Using the U.S. Occupational Information Network database, we define skilled borrowers as the borrowers with their job titles in Job Zone 5, a group of occupations requiring individuals with the most extensive skill, knowledge, education and related experience. Analyzing data from Lending Club, one of the largest P2P platforms in the US, we find evidence that skilled borrowers are perceived as trustworthy and receive lower loan interest rate and default less frequently than do their non-skilled peers. Consistent with the signaling framework, our empirical results suggest that borrowers with certain job titles send effective signals and trustworthy job titles affect lending decisions and performance. This study sheds new light on the importance of borrowers' job titles in P2P lending. Keywords: Fintech lending; Peer-to-peer lending (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:beexfi:v:41:y:2024:i:c:s2214635024000054 DOI: 10.1016/j.jbef.2024.100890 Access Statistics for this article Journal of Behavioral and Experimental Finance is currently edited by Michael Dowling and Jürgen Huber More articles in Journal of Behavioral and Experimental Finance from Elsevier |
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