The Empirical Research Of Impact Factors On Domestic P2P Online Lending

The amount of P2P online lending websites has increased to over 2000 since 2007. It is necessary for borrowers, lenders and lending platforms to pay attention to the potential risk in the lending market. Borrowers and lenders should take advantage of internet platforms to improve the lending success possibility, efficiency and reduce the lending cost. By making research on impact factors of domestic P2P online lending success possibility, efficiency and lending cost can make the borrowers have a better understanding of how to meet their lending requests and reducing the rate. In addition, lenders can check their invest behaviors and lending platforms could evaluate their ability in risk management during the lending process. This research aims to optimize the models of impact factors in P2P online lending by analyzing the real P2P online lending websites in China and build new models to evaluate every single factor that can influence the lending efficiency and lending cost.A literature review about P2P lending and the research on real lending websites is the basement of indicators re-design of this research. Probit regression model is used to estimate the lending success possibility and Heckman two-step is used to estimate the impact factors of the time that lending lists get full-funded cost and the bidders of full-funded lending, as two indicators for evaluating lending efficiency. Renrendai, one of the biggest P2P online lending website in China is the main data resource of this research.16528 records before December,2014 were collected randomly by program. Besides,2 middle scaled P2P online lending platforms, Fenghuang and Goodsure were selected as data samples. The empirical result shows that if lending websites offer extra service can dramatically improve the lending success possibility and lending efficiency. Also the rank score offered by lending platforms, and the number of online verified materials have a positive effect on lending success possibility and efficiency. The number of all history lending records of borrowers could have negative effects on lending success but the number of full-funded history records would positively effects the lending performance. The lending success possibility of listing in middle scaled P2P online lending websites could be higher than big scaled P2P lending platforms.