Dual Signal And Financial Cost

P2P lending(also called Social Lending or peer to peer lending)gets the reality that the information,resource and capital flow freely among people by the way of Internet technology.P2 P lending provides a new financing channel for those who can not get loans from banks and other credit institutions.As a financial innovation model,P2 P network lending plays a important role in many fields including perfecting financial system,filling the vacancy of providing credit for small and medium-sized enterprises and alleviating the private capital investment demand.P2 P lending has attracted worldwide attention and brought multiple meanings in inclusive financial system and democratic finance with the long tail effect.With the P2 P network lending market in the world within the scope of the boom,P2 P lending market in China has experienced a leapfrog development.Due to in the elementary development of P2 P lending,the regulatory authorities do not give many restrictions in this new industry.As a result,various risks and issues are fully exposed in recent years.Especially in 2015 the happening of "E rent treasure" event let all investors recognize that preventing investment risks must understand the real operation condition and the project background of the P2 P network lending platform by all kinds of ways.Therefore,strengthening the P2 P network lending industry to improve the transparency of information and enhancing the quality of information disclosure P2 P network lending platform becomes urgent.In the capital market,regulatory agencies make a clear request for the information disclosure of listed companies.To investigate the content of information disclosed by listed companies is a good way to know the company's earnings reliability,effectiveness of internal control and operation compliance with their own investment risk and default probability measure of business.In China's P2 P network lending market,the major P2 P network lending platform for information disclosure is still a voluntary behavior.In recent years,with the rules of "Guidance on promoting the healthy development of Internet financial "," Management Interim Measures for network credit information intermediary business activity " and other regulations issued,China's P2 P network lending industry information disclosure supervision system has been gradually improving.The cost of capital is one of the important factors to measure the economic consequences of disclosure of information,due to information disclosure have provided valuable information to the information users,the cost of capital financing costs reflected in the P2 P network lending market.Therefore,the effective supervision of the P2 P network lending market can not be separated from the means of information disclosure to ensure its good operation.At present the study of Internet financial theory have been increasd,but the study of P2 P as the representative of the Internet financial information disclosure of the results are not many.Also making research on the P2 P network lending information disclosure will be beneficial to the theoretical framework of perfecting the information disclosure system,which broaden the research field of the information disclosure system.At the same time,exploring the relationship between the P2 P network lending information disclosure and the cost of financing helps to further understand the P2 P network lending whether reduces the social cost and plays a positive role in broadening the financing channels for the borrower.I hope this paper will bring practical effect for the introduction of the policy to provide some evidences,also hope that through the study of strengthening the P2 P network lending information disclosure,investor protection form a good atmosphere,so that more people understand the P2 P network lending has the potential to reduce the cost of financing,so as to broaden financing channels,make more social the value of use of the Internet Finance in china.This research method is combining normative research and empirical research.At the beginning of this paper,I raised the main problems which need to be solved.Then this paper is composed along the line of "basic research-theoretical analysis-empirical test results –conlusions and suggestions".Chaper 2 Reviews papers about the P2 P network lending Information Disclosure in China and abroad.Then the paper introduces main theories related P2 P lending including game theory,contract theory,signaling theory and so on.In this part I use related models to analyze the P2 P network lending platform for signaling the economic consequences by actively disclosing information,especially the influence on the cost of financing.I divide the concept of P2 P network lending information disclosure into two aspects,one is the information disclosure for borrower itself,the other is the operation disclosure of the P2 P lending platform.The two is to take the initiative to disclose financial information management platform and the P2 P network lending platform of economic consequences,and explores two aspects of information disclosure content there is a substitution effect,and tested by using more than 300 P2 P network lending platforms.The fourth chapter to the sixth chapter of this paper are the empirical research contents.The fourth chapter is to investigate the borrower's information disclosure whether can reduce the information asymmetry between the two sides in the transaction,based on data of paipaidai site,which is a P2 P network lending platform.The multiple linear regression models are established in this part.The results suggest that the the borrower ppdai website information disclosure and the cost of financing is in a significant negative correlation,namely the borrower information disclosure helps to reduce information asymmetry.Further research has also found that P2 P network lending to borrowers of information disclosure will bring other economic consequences: improving the success rate of the subject and attracting more investors to invest in this P2 P site.The fifth chapter uses the signaling theory,reputation theory,theory of investor protection to analyze.Then an empirical research is conducted through the P2 P network lending platform management data from more than 300 sites,the P2 P network lending platform voluntarily disclosing the financial or operational information can play a role as a signal.It can bring a good platform reputation,reduce the risk level of the platform,protect the interests of investors,improve the relationship between the P2 P network lending platform and investors.The empirical results show that there is a significant positive correlation between the net cash flow and the P2 P network lending site voluntarily disclosing the financial or operational information.The voluntarily disclosing is significantly negatively related to the level of risk of the P2 P site.The sixth chapter explains the dual signaling theory about the P2 P network lending site.The dual signaling means the information disclosure can be divided into two aspects,the borrower information disclosure and management of information disclosure,which can reduce the cost of financing.Specific empirical results are as follows: After controlling other variables,the P2 P website to the borrower's information disclosure is more comprehensive and credible,the overall financing costs of the site is lower.The P2 P network lending platform voluntarily disclosing its operational or financial information help to improve the P2P's reputation,so as to reduce the information asymmetry and the financing cost effect.The P2 P network lending platform for the borrower information disclosure and information disclosure both in terms of reducing the cost of financing is an alternative,rather than a complementary role.The fourth is to further consider the platform where the level of financial development and the level of the platform is state-owned and other factors,the study of the correlation between information disclosure of P2 P network lending and financing costs.The results show that in the same conditions,the higher the level of financial development in the P2 P network lending platform,the more significant correlation between the information disclosure and the cost of the network lending platform.Whether state-owned or non state-owned P2 P network lending platform improving the information disclosure by the borrower to reduce financing costs are effective,but active disclosure of business information to reduce the financing cost significantly only in a sample of P2 P network lending platform in non state-owned background.The innovation of this paper is mainly reflected in the following three aspects: first,the innovation of the research perspective.This paper pioneered to use the dual signal theory to analyze the mechanism that the P2 P lending site disclosure its information can reduce the cost of financing.The article divided P2 P information disclosure into two parts: the borrower information and the operating information,which composed the dual signal to reduce the finacing cost of P2 P lending site.This perspective is unique and novel..The second innovation is from the research data.Little empirical analysis which is on the topic of P2 P lending site exsit at present.Even if there are some empirical studies,their research data is only used by one P2 P platform.Using multi P2 P platform data to carry out empirical analysis is rare.But this paper is on the contrary.The data are from more than 300 P2 P lending sites that expands data coverage,so the empirical results enhance the breadth and depth of the study.Again,this paper obtains some valuable conclusions,such as information disclosing can reduce the cost of the P2 P site,the information disclosing can increase the security of the P2 P site,which provide a reference for the introduction of regulatory policies.Also these fingdings help to standardize the development of the whole P2 P industry,reduce the quantity of problem P2 P sites and protect the interests of investors.So the research content of this paper has certain significance in both theory and reality.