Identifying the Influencing Factors on Investors’ Investment Behavior: An Empirical Study Focusing on the Chinese P2P Lending Market

Xi Yang, Wenjuan Fan and Shanlin Yang
Additional contact information
Xi Yang: School of Management, Hefei University of Technology, Hefei 230009, China
Wenjuan Fan: School of Management, Hefei University of Technology, Hefei 230009, China
Shanlin Yang: School of Management, Hefei University of Technology, Hefei 230009, China

Sustainability, 2020, vol. 12, issue 13, 1-21

Abstract: Our study explores the factors influencing investors’ behavior in the peer-to-peer (P2P) lending market in China, and the relationships among them from the perspective of investors. The primary component analysis method was used to divide the P2P lending platforms into five categories. Then, a structural equation model was applied to analyze the interrelationship. Our results show that more exceptional operating ability, profitability, and security of the platform help to improve investor’s investment behavior. Operation ability is the most significant influencing factor, which also influences other factors to different degrees. After the analysis of the results, we found that the security degree of P2P lending platforms in China differs, and the risk due to the lack of bank depository for platforms is the most serious. In terms of the background, investors are less interested in the state-owned platforms compared to the bank- or listed-company-owned platforms, although the background strength of the state-owned platforms is more powerful.

Keywords: peer-to-peer (P2P) lending platform; uncertainty; investment behavior; green investments; principal component analysis; structural equation model (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://www.mdpi.com/2071-1050/12/13/5345/pdf (application/pdf)
https://www.mdpi.com/2071-1050/12/13/5345/ (text/html)

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:gam:jsusta:v:12:y:2020:i:13:p:5345-:d:379216

Access Statistics for this article

Sustainability is currently edited by Ms. Alexandra Wu

More articles in Sustainability from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().