Investor attention and platform interest rate in Chinese peer-to-peer lending market

Feng He, Shuqi Qin and Xiaotao Zhang

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

Abstract: We focus on 224 big Peer-to-Peer(P2P) lending platforms from 2015 to 2019 to test whether investor attention affects the return in an online lending environment. As investors mainly obtain the platform information through Internet, we use Baidu search index as a proxy of investor attention. Empirical results show that investor attention will decrease the platform average projects’ interest rate by 15%, and this effect is considerably stronger for middle attention level platforms. The result is robust after controlling for the endogeneity caused by possible reverse causality.

Keywords: Investor attention; Baidu search index; P2P lending; Interest rate (search for similar items in EconPapers)
Date: 2021
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:39:y:2021:i:c:s1544612319313571

DOI: 10.1016/j.frl.2020.101559

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