The Effects Of Group Systems On P2P Lending Behavior

In the field of economic and management,banks and enterprises make full use of market resources and integrate them through "Baotuan" and making an alliance.Holding together can push banks and the enterprises to inject the strong vitality of the competition and development,to join hands to cope with the grim situation,and to pull through the "economic winter".Then in the field of Internet finance,can borrowers hold together for warmth just like banks or enterprises?This paper aims to explore the following questions:This paper aims to explore the following questions:first,in the P2P network lending,which borrowers are more inclined to join the group?This is the first problem of this paper.The borrowers who join the group can increase investors' confidence,thus improve the success rate of the borrowing,which is the second question this paper is going to answer;for the sample of the success borrowing,the borrowing rate and amount of funding per unit time are not the same,the third question is whether joining the group can decrease borrowing rate and improve the financing efficiency?On the premise of the third question,on which borrowers' credit rating does joining the group has greater impact,this is the fourth questions raised in this paper.The last question of this paper is for the borrowers who succeed borrowing,if we continue to track the performance of their repayment,then will there be differences in repayment performance between those who join the group and those who don't?This paper used lending transaction data from the Prosper network lending plat-form as the sample to test the impact of group system on lending behavior from five perspectives.The main results show that:to choose whether or not to "Baotuan",different borrowers have different strategies.Borrowers can hold together for warmth to a certain extent,but the "warmth effect" varies for different Borrowers.Specifi-cally:first,the borrowers whose credit rating is lower are more inclined to join the Group;secondly,to join the group can increase the success rate of borrowing;again,for the borrowers who get obtained the loan,those in group have lower interest rates and higher borrowing efficiency;moreover,the impacts of whether joining group are more obvious for borrowers with a lower credit rating;finally,for the borrowers in group,those repayment performance were not good and had higher default rate.The study of this paper not only enriches the study of the impact factors on the P2P network lending behavior,but also provides a useful reference for the healthy development of the domestic P2P network platform lending:(1)We should set up a group system for P2P net loan platform suitable for China's current credit system to help the "soft information" disclosure,and to reduce the degree of information asymmetry,improve the loan success rate,lower the loan interest rate,improve the efficiency of financing,and provide a channel to increase degree of trust for borrowers with relatively low credit ratings.(2)If each borrower can join group at low cost,then the separation effect of group will be invalid.So for borrowers with low credit ratings,setting high barriers to entry group,to realize the separation equilibrium and make group have their own signal function for credit rating.(3)To design a reasonable group leader incentive mechanism,and encourage the group leader to carefully examine the borrowing target.