Friendship in Online Peer-to-Peer Lending:  Pipes, Prisms, and Relational Herding

De, Liu; Brass, Daniel J.; Lu, Yilong; Chen, Dongyu

doi:10.25300/misq/2015/39.3.11

Cited by 233 publications

(58 citation statements)

References 46 publications

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“…On the other hand, investors are motivated to support or help creators, gain or collect rewards, and become members of a community [47][48][49][50]. In addition, many scholars have also investigated the behavior of investors, such as the herding effect and the bystander effect [50][51][52]. In the early stage of financing, investors are more likely to follow the trend to invest in projects, and the herding effect is significant.…”

Section: Crowdfunding and Reward-based Crowdfundingmentioning

confidence: 99%

Research on the Effects of Information Description on Crowdfunding Success within a Sustainable Economy—The Perspective of Information Communication

Liang¹,

Hu²,

Jiang³

2020

Sustainability

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Crowdfunding has been widely used by small and micro enterprises, which can raise funds through launching a project in crowdfunding platform. It is also beneficial to sustainable financing. What is more, the success of crowdfunding projects facilitates the sustainable development of those growing enterprises. In this study, from the perspective of information communication and based on information asymmetry and signaling theory, we identify three dimensions of information description, including information quantity (word count, picture count and video count), information attitude (as measured by comment), and information quality (readability and update). We empirically examine their direct effects on crowdfunding success and the moderating effect of information attitude using binary logistic regression. Data (N = 7207) is collected from Kickstarter, a popular crowdfunding platform. The results reveal that when considering these three dimensions of information description together, word count is associated with crowdfunding success in an inverted-U shape. Picture count, video count, comment, and update have positive effects on crowdfunding success. In contrast, readability is negatively related to crowdfunding success. In addition, we find that comment negatively moderates the effect of picture count on crowdfunding success. These findings show the significance of information description on crowdfunding success, bringing theoretical and practical insights for project creators.

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Section: Crowdfunding and Reward-based Crowdfundingmentioning

confidence: 99%

Research on the Effects of Information Description on Crowdfunding Success within a Sustainable Economy—The Perspective of Information Communication

Liang¹,

Hu²,

Jiang³

2020

Sustainability

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show abstract

“…Meanwhile, there is empirical evidence to support the features of Phase III. Colombo et al (2015) argued that a sufficient amount of early contributions in a reward crowdfunding campaign can trigger a self-reinforcing mechanism, thereby accelerating the accumulation of total funding, while the previous investments lead to herding behaviours in lending crowdfunding campaigns (Luo and Lin, 2013;Liu et al 2015). As for equity crowdfunding, the funds raised in the early stage of crowdfunding campaigns result in an information cascade among investors, thereby increasing the chance that the project will be fully funded (Vismara, 2016b).…”

Section: Crowdfunding Activitiesmentioning

confidence: 99%

“…The difference between Phase II and III is that investors are motivated to follow other investors' decisions instead of evaluating the quality of projects. The funding accumulated in the earlier stages attracts a large number of investors by enhancing collective intelligence (Yum et al 2012), reducing uncertainty (Colombo et al 2015); causing information cascades (Vismara 2016b); and leading to herding behaviours (Liu et al 2015;Mohammadi and Shafi 2018). The selfreinforcing mechanism is triggered by the fact that members in the virtual communities affect others' decision-making.…”

Section: Crowdfunding Activitiesmentioning

confidence: 99%

Crowdfunding and Social Capital: A Systematic Literature Review

2019

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“…Friendships increase the probability of successful funding, lower interest rates on funded loans. Liu et al [6]; Faia and Paiella [7] also encountered in the literature. Duarte et al [8] studied the role of appearance in peer-to-peer lending and argued that borrowers who appear more trustworthy have higher probabilities of having their loans funded.…”

Section: P2p Lendingmentioning

confidence: 99%

Borrower-lender Information Fusion for P2P Lending: A Nonparametric Approach

Guo¹,

Jiang²,

Chen³

et al. 2019

ISI

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As known to us, tremendous efforts have been made to exploit information from borrower's credit for loan evaluation in P2P lending, but seldom researches have explored information from investors and borrowers. To this end, we propose an integrated loan evaluation model that exploits and fuses multi-source information from both the borrower and the investor for improving investment decisions in P2P lending. First, based on the borrower's credit, we build a kernel-based credit risk model to quantitatively evaluate each loan. Second, we build an investor composition model that exploits information from the investor's investment behavior for loan evaluation. Then, based on the above two quantitative models and correlation, we define a multi-kernel weight and develop an integrated loan assessment model that can evaluate a loan with both the return and risk. Furthermore, based on the integrated information loan evaluation model, we formalize the investment decisions in P2P lending as a portfolio optimization problem with boundary constraints to help investor make better investment decisions. To validate the proposed model, we perform extensive experiments on the realworld data from the world's largest P2P lending marketplace. Experimental results reveal that the integrated loan evaluation model can significantly enhance investment performance beyond the existing model in P2P market and other baseline models.

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Friendship in Online Peer-to-Peer Lending: Pipes, Prisms, and Relational Herding

Cited by 233 publications

References 46 publications

Research on the Effects of Information Description on Crowdfunding Success within a Sustainable Economy—The Perspective of Information Communication

Research on the Effects of Information Description on Crowdfunding Success within a Sustainable Economy—The Perspective of Information Communication

Crowdfunding and Social Capital: A Systematic Literature Review

Borrower-lender Information Fusion for P2P Lending: A Nonparametric Approach

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