Explore The Impact Of Trust Mechanism To Peer-To-Peer Loan Lender’s Decision-Making Behavior

Peer-to-peer lending is a way of credit loan that lenders lend the funds to borrowers through intermediaries. As a new type of private financial model, Peer-to-peer lending has the characteristics of simplicity and convenient that can effectively solve the problem of the shortage of funds in emergency. Despite the domestic peer-to-peer lending has taken shape now, but still in the primary stage of development. Improve the success rate of the peer-to-peer lending is the key to guarantee the rapid development of the peer-to-peer lending, which requires an understanding of the peer to peer lending’s lending decisions.Based on the perspective of trust mechanism, the purpose of this paper is to quantitatively measure the effect path and impact that trust mechanisms affect the lenders’lending decision behavior of the peer-to-peer lending. We launched a multi-stage sampling survey of the member of the peer-to-peer lending site. In the empirical analysis, we propose the hypotheses based on behavioral finance theory and social capital theory. By building structural equation model, We explore the direction and path of the impact that perception of social capital, perception the quality of information, perception of risk, and perception of trading platform influence the decision-making of the peer-to-peer lending’s lenders. The conclusion is shown as follows. First, perception of risk have a great efforts to the decision of the peer-to-peer lending’s lenders. The impact on the lending decision-making behavior is negative. Second, structural social capital has a negative impact on the decision of network loan’s lenders through impact of perceived risk. Third, trust of the lending platform will positively affect the network loan lender’s lending decisions. But the perception of risk has negative effects to the trust of the lending platform. Forth, quality of the information lenders perceived negatively effect on risk perception, thereby positively affecting the network lenders’lending decisions behavior. This article ultimately provides advice to peer-to-peer lending’s lenders, network borrowing trading platforms and government, hoping to promote the further development of the network lending.