Does university reputation matter? Evidence from peer-to-peer lending

Jianwen Li and Jinyan Hu

Finance Research Letters, 2019, vol. 31, issue C, 66-77

Abstract: Using the sample of listings from one of the famous peer-to-peer lending platforms in China, Renrendai.com, we investigate the role of university reputation in peer-to-peer lending. The empirical results show that it is easier for borrowers who graduated from prestigious universities to obtain the requested loans and to have a higher fraction of listing funded. Borrowers who graduated from top ranking universities usually have a lower possibility of loan default and a lower ratio of loan default. Overall, our findings suggest that the university reputation matters in peer-to-peer lending as it can predict lenders’ and borrowers’ behaviors.

Keywords: Peer-to-peer lending; University reputation; Decision making; Renrendai.com (search for similar items in EconPapers)
JEL-codes: G11 G14 G23 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:31:y:2019:i:c:p:66-77

DOI: 10.1016/j.frl.2019.04.004

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