Will CEOs with banking experience lower default risks? Evidence from P2P lending platforms in China

Qiang Gong, Chong Liu, Qianni Peng and Luying Wang

Finance Research Letters, 2020, vol. 36, issue C

Abstract: Using a novel dataset of 121 Chinese P2P lending platforms, we investigate the impact of CEOs’ banking experience on default risk. The empirical results indicate that CEOs with prior banking experience manage default risk better. Moreover, CEOs’ banking experience has a stronger influence on small platforms and in situations where the platforms’ depository banks are city commercial banks. Our results indicate that although fintech provides technology to reduce risks, we cannot ignore the constructive role of professional experience in risk management. Thus, investors and regulators in emerging markets should pay attention to managers’ financial qualifications, and especially to CEOs’ banking experience.

Keywords: CEOs’ banking experience; Default risk; Peer-to-peer lending platform (P2P) (search for similar items in EconPapers)
JEL-codes: G23 G30 G32 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:36:y:2020:i:c:s1544612319306154

DOI: 10.1016/j.frl.2020.101461

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