Can policy intervention induce a flight to quality: an analysis of the closing of the Chinese P2P market

Lizheng Ma, Miao Li and Fei Xia

Applied Economics Letters, 2022, vol. 29, issue 18, 1726-1729

Abstract: In this letter, we study the P2P behavioural finance which addresses an effect of flight to quality under certain policy interventions. We apply the date of loan transactions from a Chinese peer-to-peer (P2P) lending platform and construct a regression discontinuity design to detect the effect of government policy intervention with the closing of the P2P market. We find that strict policy interventions have significant impacts on investors’ behaviours, which lead the investors to downgrade their expectations of the credit levels of the loan. Such impacts on investor behaviour induce a flight-to-quality scenario of the P2P market.

Date: 2022
References: Add references at CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1080/13504851.2021.1959892 (text/html)
Access to full text is restricted to subscribers.

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:taf:apeclt:v:29:y:2022:i:18:p:1726-1729

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/RAEL20

DOI: 10.1080/13504851.2021.1959892

Access Statistics for this article

Applied Economics Letters is currently edited by Anita Phillips

More articles in Applied Economics Letters from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().