Research On The Impact Of P2P Network Lending On The Credit Rating Of Investors Decision Making

P2P network lending platform for the subject given credit rating can effectively reveal the underlying risk,improve the success rate of borrowing,to help investors make decisions to ease the degree of information asymmetry in the market.In addition,descriptive information can also reveal the risk,the interest rate can not only show interest,but also reflect the risk.The first chapter is the introduction of P2P network lending,including the research background and significance,research ideas and methods,as well as the structure of the article framework.P2P network lending platform,mainly through the release of loan information on the platform,matching lending parties to collect service fees(Fees)in order to obtain income.Some platforms use their strengths in information and technology to give loan ratings to reveal risks for investors to make better decisions.However,customers and standard platform of information is limited in quantity and coverage,this rating system is scientific and can effectively reveal the risks,investors in the choice of the subject is to become the focus of research in this paper.The second chapter focuses on the theoretical basis of P2P network lending and literature review at home and abroad.In theory,the investor decision-making theory in financial market shows that the lower the degree of asymmetric information,the higher the efficiency of the market.Scientific and effective credit rating can effectively reveal risks,reduce the degree of asymmetric information and help investors make rational decisions.The literature review shows that the research on P2P lending in foreign countries mainly focuses on the factors of lending behavior and the supervision of the participants.As the credit system is perfect,both sides of the loan can effectively complete the investment and financing through the platform.The domestic research is mainly about the platform operation model,the existing problems,the risks faced and the corresponding regulatory proposals.The research on the behavior of both sides of lending shows the localization results.Domestic investors need not only the loan interest rate,loan amount,loan period and other general information in target selection,but also need the help of descriptive information,platform to release the credit rating,the relevant certification information to make more rational judgments.However,the results of the study are divided over the impact of such information on investors.Therefore,this paper will study the impact of credit rating on investor behavior.The third chapter mainly analyzes the current situation and problems of the domestic credit rating system and the subject credit rating.The domestic credit reporting system has formed a diversified pattern which takes the bank credit,the information basic database as the leading factor and the market credit agency as a supplement.P2P network lending platform,the main access to the network financial credit information system(NFCS)and micro finance industry credit information sharing service platform(MSP).The two system is a special database for safety and risk characteristics of the P2P network lending is established,but the relative database for information quality and coverage is not enough,this to a certain extent,give criminals an opportunity.Net lending platform uses its own information resources and related risk technology benchmark risk division,and given credit rating.The information of the borrowers and investors on the platform is up to date,but the authenticity remains to be investigated.Therefore,it is a question whether the risk division is effective on the basis of such information.At the same time,it is necessary to discuss whether the rating methods used by the platform are scientific or not.The fourth chapter is empirical analysis.First,make the hypothesis,then set variables and models to explain the data sources.Through data analysis,general descriptive analysis and regression analysis,the underlying credit rating and the investor is "inverted U" relationship,that there is an optimal level,the level of borrowing the highest success rate,investors will be more investment in such subject,and the best grade is level AA.The rating has no significant impact on the number of investment and per capital investment.Loan interest rates are positively related to investor decisions.The higher the interest rate,the greater the number of investments,but less per capital investment.The investment period has no significant influence on investor decision-making,but the result is not significant.The amount of borrowing can positively increase the success rate of loans and reduce the number of investors negatively.Descriptive information can effectively improve the success rate of loans,and there is no significant impact on the number of investment and per capital investment.The fifth chapter mainly discusses the conclusions and puts forward relevant suggestions.It can be found that the standard credit rating can effectively reveal the underlying risk,but investors not only consider the risk,but also to investment income,willing to sacrifice some safety choose a higher interest rate targets,so the best risk grade was level AA,rather than the low risk level AAA.The interest rate of borrowing can reveal the return and risk of investment,and it is the necessary basis for investors to make decisions.Descriptive information is also an effective indicator of risk and can improve the success rate of borrowing.The term of borrowing and the amount of money borrowed are not the main references for investors to make decisions.In view of the above results,this paper mainly from investors,borrowers,platforms and regulators four recommendations.Investors may be mainly on the subject of credit rating,loan interest rate and descriptive information,should pay attention to consider the risk,do not blindly pursue profits,and improve the ability to identify risks,choose reliable platform and safety.When issuing the subject,the borrower should actively raise the credit rating and raise the success rate of the loan;in the setting of the interest rate of the loan,the attractive value in the range should be given to attract investors.In order to improve the authenticity of information,the platform can combine the offline mode to improve the authenticity of information.The platform can establish a user information sharing mechanism to improve the effectiveness and utilization of information.The regulation can be under control under the premise of giving P2P platform in the use of credit information release authority;establish a more strict supervision mechanism,formulate relevant laws and regulations,improve the illegal cost,strengthen regulatory capacity,the problem can be found in advance,after a powerful strike illegal and criminal acts,to supervise and purge industry.