A Study On Factors And Prevention Mechanism Of Internet Financial Risk

With the Internet financial network trust, security and legal issues in the processof development of China’s Internet finance and based on the new platform economicstheory and the theory of technology acceptance model, this paper does an empiricalresearch on the factors influencing the risk in the Internet financial institutions, andthe main factors influencing the users to use the Internet finance. Thus, this paper putsforward some corresponding risk prevention mechanism of the Internet finance.Firstly, this paper reviews the literatures on Internet finance and summarizes thelack of current research and the main innovation of this paper. Secondly, this paperexplores Internet financial network trust, security and legal issues in detail. Thirdly, itdoes an empirical research on the risk factors of P2P lending from the perspective ofthe Internet financial institutions through the collection of199P2P lending platformsince August31,2008and2014. Fourth, it does an empirical research from theInternet financial user dimension to the empirical study the significant factorsaffecting users to use the Internet finance, combining with the relevant theory oftechnology acceptance model. Fifth, it proposes to establish information privacyprotection mechanism, security technology and management, Internet financial legalrisk control mechanism and to establish the Internet financial reporting mechanism toprevent Internet financial risks. In this paper, the main innovations include:1. This paper does an empirical research on the influencing factors of the Internetfinancial risk, and found that six independent variables including the average annualinterest rate (not including bonus) of P2P lending, registered capital of the P2Plending platform, the running time and the age of website domain name, the locationof P2P lending platform and the running time of P2P lending platform as the riskfactors of P2P lending significantly.2. Based on the technology acceptance model (TAM) and the structural equationmodel (SEM),This paper does an empirical research from the Internet financial userdimension to explore the significant factors affecting users to use the Internet finance.This research model includes Internet financial authentication technology, transactionnon-repudiation, transaction confidentiality, privacy protection, data integrity, the trust of the user use of the Internet financial, attitude, use intention and actual use of ninevariables. With the structural equation model (SEM), the path analysis result showsthat the actual factors affecting users to use the Internet financial include the strengthof authentication technology for Internet financial transactions, non-repudiationsecurity control strength, the strength of privacy protection safety control, dataintegrity, security control and user’s trust in the Internet financial strength.3. This paper adopt the interdisciplinary research perspectives with thecombination of the ICT technology, law technology, financial technology andelectronic commerce technology, and draw lessons from foreign experience,combined with the status of development of China’s Internet financial, to fill theblank of domestic regulation.