Financial contagion in internet lending platforms: Who pays the price?

We Geng Cheng, Rodrigo Leite and Fabio Caldieraro

Finance Research Letters, 2022, vol. 45, issue C

Abstract: By using data from a natural experiment, the 2015 Ezubao scandal in China, we show that as a consequence of negative news about a P2P financial platform, all players operating in a different platform (borrowers, lenders, and the platform itself) are worse-off due to information contagion. Moreover, we present evidence that high-income individuals and those that contracted loans for investment purposes are disproportionately affected by contagion from negative news.

Keywords: E-Finance marketplaces; Information contagion; P2P lending; Systemic risk (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:45:y:2022:i:c:s1544612321002592

DOI: 10.1016/j.frl.2021.102187

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