Does irrational lead to higher returns? Evidence from the Chinese P2P lending market

Yingxiu Zhao, Wei Zhang, Yuelei Li and Xiong Xiong

Finance Research Letters, 2021, vol. 39, issue C

Abstract: In this article, we study the relationship between investors’ rationality and their returns in the P2P lending market through a bounded rationality decision-making framework. Our model shows that low-bounded rationality (i.e., highly rational) investors earn higher returns than their high-bounded rationality counterparts. This relation is supported by our empirical tests using the Chinese P2P lending market data.

Keywords: Bounded rationality; P2P lending; Return; Reference point (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1544612319313479
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:39:y:2021:i:c:s1544612319313479

DOI: 10.1016/j.frl.2020.101608

Access Statistics for this article

Finance Research Letters is currently edited by R. Gençay

More articles in Finance Research Letters from Elsevier
Bibliographic data for series maintained by Catherine Liu ().