The Influence Of Investor Quality On Investment Decisions

Nowadays the Internet is developing rapidly,and P2P has become increasingly known to everyone.To borrow money through the P2P platform will become a way of people's lives.The investor is an important part in the P2P platform,which can not only facilitate the trading of borrowing orders,but also has indispensable significance to P2P platform.However,most of the present researches about investor's behavior on P2P network lending platform focus on the analysis concerning the influence of borrower's characteristics and order's information on investor decision-making,while few scholars study the influence of investor's quality on investment decision-making from the perspective of the investor's side.This paper works on the influence of investor's quality on his decision-making by making use of data from Renrendai,which has great significance for the investors,P2P platform and government regulators.This paper has captured the data on the platform by using the R software.First,to verify the feature whether the investor has online loaning experience will help improve his quality,thus affecting his investment decisions.Secondly,since we can only obtain the personal information of the borrowers but not the information of the pure investor,this paper selects investors with experience of loaning to study whether the other qualities,such as education,income,place of residence,whether to complete the work certification,will significantly affect the investment behavior of investors.Firstly,the paper divides all the borrowing orders into two groups:one group of orders with the investors who have the experience of the online loaning and the other group with investors without such experience.By comparing the average and the coefficient of variation of different variables from the two groups,find out the former group has higher success rate,as well as lower default rate of the transaction than the latter one.In addition,the paper uses these variables from orders to compare the proportion of success rate and default rate by Logit regression method,and the result shows that the variables basically have significant effects on the both proportion.And the paper sorts these variables according the importance showed by AIC value from these models,and two-step clustering.The study find out that the investors with online loaning experience behave better than the other group when it comes to thinking about the variables and the information in the process of transaction,besides,it indicates that the investors with online loaning experience behave better than the other group in the result of decision-making.Therefore,the paper draws the following conclusions:online loaning experience can improve the investor's investment quality,and can positively influence its investment decision-making,thus leading to more rational behavior during the investment.Secondly,the paper studies the influence of the investor's population characteristic variables which can represent the investors' quality,including education,income,place of residence and completion of the certification,on his investment decisions by the multiple linear regression method.The results show that the influence of the investor's education,the income,the place of residence and the work certification on its investment behavior is significant.That is,the higher the academic qualification and income,the higher development degree of the residence,and the completion of the work certification of the investor will help him make better investment decisions.Furthermore,the paper usetwo-step clustering,Logit and Probit regression analysis to verify the correctness of the results obtained from multiple linear regression method,thereby indicating that the analysis of this paper is not affected by the measurement method and the result is robust.