An Empirical Study On Efficiency Of Peer-to-peer Lending Markets

Peer-to-peer online lending means individuals lending or borrowing money via internet.P2 P faces opportunities and challenges when it sets up in China in 2007.On one hand,this trade take rapid growth such as it hold more and more operating platforms and participation number;on the other hand,the development of this trade reveals many problems such as it's poor efficiency of transaction.Due to find out why the efficiency of debits and credits remain in a lower level,this passage studies much literature at home and abroad.This passage analyze the program of debits and credits in two ways,if lenders want to lending or not and how much borrowers would be take,in base of theories such as social exchange,information asymmetry and behavioral finance.In the first stage,this passage introduces the definition and relevant theories of P2 P.In the second stage,we discuss it's development and patterns in China and more importantly,we study the current situation of Renrendai.In the third stage,we demonstrate the influence factors of debits and credits' efficiency in empirical way by real information of Renrendai.For one thing,we build a binary logistic model to analyze if lenders want to lending or not.For another thing,we select a multiple linear regression model to appraise the cost of borrowers.Both of them,empirical processes would carry out in three points of view,there are personal details,lending details and credit details.In the last stage,this passage try to give some suggestions for operationg platforms and supervision department in due to improve the efficiency of P2P industry.