Gender gap in peer-to-peer lending: Evidence from China

Chen, Xiao; Huang, Bihong; Ye, Dezhu

doi:10.1016/j.jbankfin.2019.105633

Cited by 83 publications

(52 citation statements)

References 61 publications

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“…In addition, the finding of this study that gender differences do not affect borrowers' repayment performance outcomes contradicts the results of D. Chen et al (2017) and X. Chen et al (2019), who found that female borrowers outperform male borrowers in terms of loan repayment. Considering that gender discrimination has been confirmed in a number of previous studies of traditional loan markets and P2P lending markets, it is believed that individual lenders in the Korean P2P lending market are making good decisions about a borrower's gender, despite the fact that they are unskilled ordinary individuals who do not have much credit assessment experience.…”

Section: Discussioncontrasting

confidence: 99%

“…In other words, no gender discrimination has been found in the three Korean P2P lending markets, and such indiscrimination by individual lenders is rational. The results of this study are similar to those of Barasinska and Schafer (2014), who analyzed Prosper data, but they differ from the findings of other studies that identified gender discrimination in individual lenders' funding decisions (D. Chen et al, 2017;X. Chen et al, 2019;Kuwabara & Thebaud, 2017;Pope & Sydnor, 2011).…”

Section: Discussioncontrasting

confidence: 54%

“…Other studies of gender discrimination have focused on the P2P lending market. Similar to traditional lending markets, several studies have shown that female borrowers are superior to male borrowers in terms of repayment performance (D. Chen, Li, & Lai, 2017;X. Chen, Huang, & Ye, 2019).…”

Section: Literature Reviewmentioning

confidence: 99%

“…X. Chen et al (2019) also insisted that lending to female borrowers is associated with better loan performance, including a lower probability of default on Renrendai, the largest P2P lending platform in China. There are mixed results regarding differences in funding probabilities by gender in P2P lending markets.…”

Section: Literature Reviewmentioning

confidence: 99%

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Sexism and Ageism in a P2P Lending Market: Evidence from Korea

KIM¹

2020

JAFEB

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This study attempts to identify gender and age discrimination by individual lenders in P2P lending markets by analyzing empirical transaction data from multiple platforms including Moneyauction, Popfunding, and 8percent. To do this, the study investigates the effects and importance of a borrower's gender and age on individual lenders' preferences and a borrower's actual repayment performance using multiple linear regression and relative weight analyses. As a result, no gender discrimination is found in the three Korean P2P lending markets, and such indiscrimination is rational, on the grounds that the borrower's gender does not have a statistically significant impact on the lenders' preferences as well as his/her actual repayment performance, and its relative importance is minimal. While, there marginally exists age discrimination against a borrower in the markets, and such ageism is likely to be irrational, on the grounds that the borrower's age has a partly significant and minimally important impact on the lenders' preferences, but has no significant and important impact on his/her repayment performance. For the first time, these findings help to clarify gender and age discrimination issues in the P2P lending market by identifying the rationality of individual lenders' preferences to the borrower's gender and age in the Korea.

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Section: Discussioncontrasting

confidence: 99%

Section: Discussioncontrasting

confidence: 54%

Section: Literature Reviewmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

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Sexism and Ageism in a P2P Lending Market: Evidence from Korea

KIM¹

2020

JAFEB

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“…In P2P loans, while factors similar to those affecting repayment of conventional loans, such as demographic, financial, and credit information (Chen et al ., 2017; Chen et al ., 2020; Ding et al ., 2019; Hu et al ., 2019; Pope and Sydnor, 2011; Tao et al ., 2017; Wang et al ., 2019) are important, factors not considered in assessing a borrower's creditworthiness in making conventional loans, such as perceived appearance (Duarte et al ., 2012), social network (Freedman and Jin, 2017), geographic location (Jiang et al ., 2019), language (Jiang et al ., 2019), and friendships (Lin et al ., 2013), are found to have a significant impact on repayment performance.…”

Section: Literature Reviewmentioning

confidence: 99%

Distinctive features of student borrowers and suboptimal investor decision‐making: Evidence from the P2P lending market

Kim¹,

Kim

2020

Asia-Pac J of Fin Stud

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This study attempts to identify the characteristics and behavioral features of student borrowers, and to investigate how well individual investors incorporate the uniqueness of these borrowers in their funding decisions. We find that student borrowers are distinct from other types of borrowers, not only with respect to factors that existed prior to joining the market, but also in terms of information generated during loan requests, subsequent cancellation behavior, repayment performance, and even in the composition and predictive accuracy of loan repayment models. However, individual investors are not fully aware of the unique attributes of student borrowers in their funding decisions.

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The perfect bail‐in: Financing without banks using peer‐to‐peer lending

2023

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We explore the potential outcomes for financial stability when using peer‐to‐peer lenders to finance economic activity. Combining Random Regression Forests, a machine‐learning process, with an agent‐based model, we perform simulations on artificial economies with various degrees of adoption of peer‐to‐peer lending. We find that as peer‐to‐peer lenders proliferate, there is increased financial instability, lower GDP and higher unemployment. On the other hand, peer‐to‐peer lending increases the total volume of loans given out but demonstrates a preference towards consumer loans (over corporate loans), which has a negative effect in the long run. Finally, introducing peer‐to‐peer lenders increases the access of the unbanked to services which conventional banking is not able to offer within the extant regulatory framework. Our results can help policymakers as they address the issue of regulation in the peer‐to‐peer finance industry.

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Gender gap in peer-to-peer lending: Evidence from China

Cited by 83 publications

References 61 publications

Sexism and Ageism in a P2P Lending Market: Evidence from Korea

Sexism and Ageism in a P2P Lending Market: Evidence from Korea

Distinctive features of student borrowers and suboptimal investor decision‐making: Evidence from the P2P lending market

The perfect bail‐in: Financing without banks using peer‐to‐peer lending

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