The Effects Of Social Capital On P2P Lending Behavior

For a long time, the financing problem is one of the bottleneck of the small micro enterprise and entrepreneurship. As a supplement to the formal financial system, network lending help to solve the small micro enterprise and entrepreneurship enterprise financing difficult problem. Network lending is the novation of the micro financial operation mode, which is mainly used for meet the demand of small and medium-sized enterprises and individual groups of small loans.Domestic network lending has developed rapidly in recent years, lending platform arises at the historic moment, but the network lending market is still in the extensive development stage, each big platform operating efficiency is not high, many investors could not accurately find the right loan object, and the success rate of lending is very low. So how to improve the efficiency of the network lending market, is a problem to be solved immediately.Based on the basic theory of network lending, combining with the actual clap credit transaction data, extracting the success rate of borrowing, lending interest rate and loaning amount and repayment months, as interpreted variable of the regression model, and extracting some indicators reflecting social capital of the borrower, the personal characteristics and the characteristics of borrowing list as the independent variables of the model, by using EXCEL a variety of functions, the original transaction data preprocessing and get23155valid sample data. Then using SPSS19.0to analyse the general descriptive statistics and regression. Through empirical analysis to explore the social capital’s influence on network lending mechanism, which aims to provide meaningful Suggestions both borrowers and lenders and provides some ideas of the lending platform to promote the efficiency of running with.(1) In the aspect of network lending bidding behavior, it uses EXCEL tool to extract every tender time of bidding and carries on the descriptive statistical analysis. According to results showed that nearly half of the bidders to bid for3days, and they have a wait-and-see attitude in the’list in the hitherto and worried whether can full scale is larger for loan project concerned. This shows that the process of the network lending in bidding behavior has certain herd behaviour.(2) In aspect of a the borrower’s social capital on the result of borrowing, we can analyze through establishing multiple linear regression model, and combining with the data to the influence factors of the completion of lending and borrowing rates. We found that the loan list the total number of bids, the amount of borrower’s friends, friends bid amount proportion, borrow credit points and list views in different extent have a significant positive effect on borrowing completion rate. The borrower’s personal characteristics (gender, marriage, children) have a negative impact on borrowing completion rate.There is a relatively new found that there is the significant negative influence of number of friends bid on borrowing completion rate.this does not match the research conclusion of Lin (2009a), their results show that the borrower the relationship between social capital embedded dimension can effectively reduce the information asymmetry in the process of trading, and can improve the success rate of borrowing[61]. Here, I put forward my personal point of view, friends here bid count to a certain extent can enhance the perceived risk of subsequent tenderer, which reduces the subsequent bidding enthusiasm, and reduces negative affect the loan completion. In addition, the number of certification as an important indicators that reflect the truthfulness of the borrower, and is no significant effect on borrowing completion rate.The author thinks that the borrower’s credit score which contains the comprehensive information of the borrowers, so the effect of completion certification number of borrowing may be borrowed credit branch coverage, which leads to the result was not significant. In terms of loan interest rates, the analysis shows that the total number of bids, browse, borrow credit points, certification number, gender, and children are in remarkable positive correlation, the borrowing rate and friends number of bidding, the bid amount proportion and the marriage has a negative influence coefficient. Here, the number of indicators reflect the characteristics of borrowing list (the total number of bids, visits of list) and borrowing rates are significantly positive correlation, and the index of measuring relational social capital (friends bid number, and bid amount proportion) were negatively correlated with borrowing rates, in addition, the index reflecting structural social capital (friends), there is no significant impact on borrowing rates. From the perspective of the borrowers, compared to the structural social capital, social capital, the relational social capital is more important for reducing the borrowing rates.(3)In the aspect of social capital in the borrower to its own borrowing request, this paper studiest that the borrowing request only the amount of borrowing and repayment months, as the dependent variable regression model are analyzed. The result shows that the number of friends, sex and marriage are positively correlated with borrowing request amount, and number and the number of children of user authentication are negatively correlated to the amount of loan request. Number of friends and marriage have positive correlation with repayment months, borrowing in the credit points, the number of user authentication, the gender and number of children were negatively correlated with repayment months. The only significant is the impact of borrowing credit points for amount. The reason is that borrowing platform mostly belong to small micro lending, borrowers borrow credit points higher in release loan request, they will consider other factors, the influence of lending in the credit points are covered, so the effect was not significant. From these results, we can come to the conclusion that the following points:1.the more the number of friends, the more the borrower’s loan request amount is larger, at the same time, the smaller the repayment pressure.2. male borrower loan amount is larger, but is larger about its repayment pressure.3. married the borrower money request amount is larger, and the smaller the repayment pressure; Certification number of borrowers, the loan request more real, so its loan amount is low, and its enthusiasm higher reimbursement;4. borrowing in the credit is the most direct reflection as the borrower’s credit level can promote the borrower’s repayment enthusiasm.This paper confirmed the important effect of social capital in the network lending activities. Through the empirical analysis, we found that the social capital on the outcome and the borrower has a different impact their loan request. Not only made a contribution to the theory of network lending in theory, but also for each main body to the network lending provided valuable advice in practice, it has very important significance for the development of the network lending market and lender both us.