Research On Financing Behavior Of P2P Online Lending

P2P online borrowing and lending, originating from abroad, expanded and developed in China, is an online direct borrowing and lending method between individuals. After being introduced to China, online borrowing and lending has seen rapid development evidenced by the emergence of a number of well-known companies. Yet, the industry has also been troubled by issues such as low financing success rate, high interest rate. The thesis intends to investigate the overall financing efficiency of P2P online borrowing and lending platforms in China in terms of standardization of financing cost, availability of financing. The theoretical analysis shows that whether the financing efficiency of P2P online borrowing and lending platforms can be improved is subject to:on the one hand, if the platforms have solved the problem of insufficiency and asymmetry of information; on the other hand, if the platforms have built effective trust systems. Furthermore, financing interest and financing availability has been treated us two proxy variables of financing efficiency in the empirical analysis. The results indicate that the more sufficient and complete the information is, the higher the trust is, and the easier the financing is. To push forward P2P online borrowing and lending platforms and to promote progress of the financing market as a whole, combined efforts must be made by all stakeholders.