Network centrality effects in peer to peer lending

Xiao Chen, Zhaohui Chong, Paolo Giudici and Bihong Huang

Physica A: Statistical Mechanics and its Applications, 2022, vol. 600, issue C

Abstract: This paper investigates the impact of network centrality on borrowers’ and lenders’ behavior in P2P lending. The empirical analysis on a leading Chinese lending platform reveals that the lenders who are in the center of a network not only invest by larger amounts but also more swiftly than their peers, reflecting the experience and information advantage arising from their position in the network. Furthermore central borrowers can borrow at lower interest rates with higher success rates, and have lower probability of default.

Keywords: Network centrality; Peer-to-peer lending; Lending behavior; Loan outcomes (search for similar items in EconPapers)
JEL-codes: C21 C58 E44 G21 (search for similar items in EconPapers)
Date: 2022
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:phsmap:v:600:y:2022:i:c:s0378437122003818

DOI: 10.1016/j.physa.2022.127546

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