Research On The Impact Of Lender's Ethics On Lending Intention In Online P2P Markets

Online Peer-to-Peer(P2P)lending is the online innovative lending and investment without the intermediation of traditional financial institutions.In the previous studies,researchers studied the factors that impact to lender decision in several fields such as demographic characteristics of borrower,herding behavior.However,very few studies have been conducted in the field of ethics in online P2 P lending research.Therefore,the purpose of this study is to explore and develop integrated model that examine the lender's ethics influence on lenders' lending intention specifically for online P2 P lending by using trust as mediator factor and to determine factors(demographics of borrower and perceived risk)that influence the relationship between lender's ethics and lending intention.In order to examine the ethical influence,the study develops an integrated model by using ethical decision-making model and web trust model.The questionnaires of this study consisting of measurement scales are developed and adapted from prior studies in the context of online P2 P lending and e-commerce.The sample of the study was collected from 412 valid samples who always use internet banking,online transaction or have experience with using online P2 P lending.After collecting questionnaire,this study was used SPSS 22(Statistical Package for the Social Science)to identify characteristics of the samples by using frequency and percentage in descriptive statistics and used SEM with Amos 22 to test model and analyze data.The results showed that social consensus,proximity and moral philosophies have a significantly positive impact on trust in borrower.Likewise,the trust in borrower also has a significantly positive impact on lender's lending intention.However,perceived ethics has not significantly impact on trust in borrower.Moreover,this study also found that perceived risk does not moderate effect of lender's trust in borrower on lender's lending intention,but it negatively influences lender's lending intention.This study also found that the effect of social consensus and proximity on lender's lending intention was partially mediated by lender's trust in borrower and borrower's gender and occupation moderate relationship between ethics in lender(including social consensus,proximity and perceived ethics)and trust in borrower.This study provides information to help the researchers understand the lending behaviors in developing countries such as Thailand and provides several insights for policymakers,lenders and lending intermediaries.Moreover,the finding of this study also can be used as the guideline for borrowers who want to use online P2 P lending and provides information to help the policymakers and the lending intermediaries to understand the lending behaviors in developing countries such as Thailand.More understanding of the differences and similarities in personal characteristics of the people from various countries is useful for lenders or borrowers who plan to use or invest in the online P2 P lending company.