Mass shootings and peer-to-peer lending

Raffi E. García, Sen Li and Abdullah Al Mahmud

Finance Research Letters, 2022, vol. 47, issue PA

Abstract: This paper analyzes the effect of mass shootings on peer-to-peer lending behavior. Using U.S. data from 2014–2018, we implement an event study methodology to exploit the quasi-experimental nature of mass-shooting incidents on local credit markets. Our findings indicate a short-term tightening of local credit conditions (higher interest rates and lower loan amounts) immediately after a mass shooting in affected communities relative to those in non-affected communities. These findings highlight that online credit marketplaces are reactive to random local shocks of violence at the community level and their corresponding public and media attention.

Keywords: FinTech; Mass shooting; Peer-to-peer lending; Access to credit; Crowdfunding (search for similar items in EconPapers)
JEL-codes: G0 G20 G40 G50 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:47:y:2022:i:pa:s1544612321005444

DOI: 10.1016/j.frl.2021.102606

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