How Investment Experience Effects Lenders' Lending Behavior In Peer-to-peer Lending

In recent years,P2P lending has generated a great deal of attention in China,and there are more and more researches on this field.The research scope covers the financial theory,the risk control of the platform,the behavioral characteristics of the borrowers and the lenders.This paper studies the behavior of "self-learning",which aims to give new inspirations to academic research and investment practice.Based on the transaction data from PaipaiDai.com,this paper analyzes the influence of lenders' investment experience on their lending behaviors in P2P lending.In other words,lenders will learn from their previous experience and accordingly adjust lending strategies to achieve more benefits.We adopts the empirical research method of econometric model to interpret the lenders' experience as the explanatory variable.In order to study the influence of different types of investment experience on the learning behavior of lenders,we divides investment experience into two types,namely comprehensive experience and failure experience and then explores the influence of lenders' experience on their lending strategy.Two main conclusions can be drawn on the basis of the empirical analysis.First,the accumulation of lenders' comprehensive lending experience could lead to equally active performance in the early-stage and late-stage of funding,and portfolio with low risk yet large capital is the preference for lenders to save time.Second,lenders tend to invest in the early stage of funding and take comparatively conservative funding strategy due to the accumulation of investing failures through studying how failures affect their lending behaviors.Meanwhile,we found that some lenders show"repeated bidding" in the bidding process,which is related to the lenders' experience.Different from the existing research,the research point of this paper starts from the lenders themselves and studies their own influence on their investment behavior.Moreover,the concept of "repeated bidding" was first proposed,and this behavior was explained reasonably through lenders" investment experience.Both in the field of theory research,and in the field of empirical research,our research results have a certain innovative and relevant.