Research On The Power Generation Of Herding Of P2P Lending Investment

With the popularization of Internet technology, the concept of using Internet financial management has gradually been deeply rooted in the hearts of the people, and enabled the Internet financial to form a full range of impact on the traditional financial order. Since 2007, when it landed in China, P2P network lending has always been the most popular Internet finance and the most controversial segment at the same time.Meanwhile, there exists certain herd behavior in voting, consumption and investment decisions of users on the Internet. Of course, in P2P network lending, the herd behavior has caused a huge amount of borrowing and investment transactions, while it has also made investment decision-making somewhat blind, resulting in financial security issues. In order to avoid the adverse effects of herding and to promote the healthy development of the P2P network lending platform, our research has certain practical and theoretical significance.In the existing studies, the research on the herding behavior of decision-making investment mainly concentrates on the traditional financial field. While In our study, we set the P2P network loan investment decision-making as research target, based on rational choice and crowd mentality, to study the power formation factors of herding behavior in P2P loan investment decision-making. First of all, based on information waterfall decision-making scenarios, we introduce dual-signal model innovatively, divide the impact of factors into decision-making signal and private signal, construct a model of factors influencing the herding effect of P2P network loan investment decision-making based on rational choice, and make an empirical research on the influencing factors of herding effect of P2P network loan investment decision-making. Based on a large amount of real data of Ren Ren Dai platform, this paper uses the multiple linear regression method to carry on the data demonstration to study the influencing factors and influence degree of the herding behavior of the investment decision in Ren Ren Dai platform. Afterwards, we study the influencing factors of herding behavior of investment decision-making herding based on crowd mentality. According to Social Impact Theory, the influence of herding behavior can be divided into normative influence and informational influence. We introduce perceived social capital and perceived information quality to measure two kinds of influencing factors,and thus construct a herd psychological model of P2P network loan investment decision-making herding behavior.From the results of our study, we can see that in the model based on rational selection, these indicators have a positive effect on the formation of herding, including current progress of the subject, borrower's income,underlying interest rate of the borrower, borrower's credit rating and borrower's repayment. On the contrary, the total amount of borrowing has a negative effect on the formation of herding. In the model based on crowd mentality, perceived information quality, perceived information source reliability and perceived relationship social capital have positive effects on social impact, while the lender perceived norms and information society impact have positive effects on the formation of herding behavior. In addition, according to the conclusion, this paper puts forward some reasonable suggestions to P2P network loan platform operators and P2P network loan investors.