The Influence Of Friend Relationship On Bidder's Decision In Online Peer-To-Peer Lending

P2P(peer-to-peer)refers to a new mode of micro lending,a new financing way that independ on traditional financial institutions and converge funds through the Internet.Comparing with traditional bank loans,P2P possess low borrowing threshold,convenient transaction,without complex mortgage,short loan amount and short period,boosting P2P mode quickly occupy the market and develop rapidly.Meanwhile,due to it incomplete legal norms,information disclosure system,credit rating process and so on,the operation efficiency of the network loan platforms are anemic.The borrower has high flow rate and investors facing multiple risks,which restricts the development of the network loan platform.At present,researches on peer-to-peer lending are limited,the achievements mainly concentrating on hard information for the lending behavior and reduce the risk from the platform.The research on hard information mainly focused on Prosper platform data,and in the aspect of soft information,mainly focuses on the description of the loan.The influence of social network on borrowing behavior,mainly involves the quantitative analysis about some social network indicators,and the influence from social capital on borrowing results,but the researches for specific investor decision-making behavior as well as the reasons behind behavior,still existing large gaps.This paper focuses on the social capital of the borrowers,in friends bid dimension,based on the information asymmetry as an mediating variable,network scale as a moderating variable,discussing the o influence to potential investors when a bid from borrower's friend appear.And in different network scales,whether trigger information cascade or interrupt it.Try to answer the following questions:does a friend bid from borrower bring high quality information to the potential investors?Whether it reduces the information asymmetry in the transaction process?Whether this information advantage disappearing when the information cascade appeared?If the information advantage disappears,does the friend bid still reduce the information asymmetry in the transaction.process and improve the investment intention of potential investors?The conclusion of this study could help investors avoiding blind follower behaviors and making rational investment decisions,providing scientific management information for online lending platform.Through two experiments,and more than samples,using SPSS22.0 and AMOS21.0 soft-wares for data analysis,drawing the follow conclusions:first,the borrower friends bid effect the potential investors willing,information asymmetry plays a mediating role;friends bid providing additional information,reduce the information asymmetry in the decision making process and improve the potential investors willingness.Second,the market scale will negatively moderate this influence.When the market sizes small,friends bid significantly reducing the information asymmetry,and improving the investment intention;when the size of the market increasing,weakening the influence of friends bid.Third,the expansion of network scale will form herding behavior based on information cascade.Additional information brought by investors will reduce information asymmetry,form following behaviors and improve investment willingness.But this herding behavior is not stable,will be break by subsequent borrower's friend bidding behavior,than,reducing the willingness of investment.Because this experimental method control the effect from a friendbid,then,this essay use the 1464 loan list data from Prosper platform,to analysis influence the number of friendbids,like reducing loan interest rates,improving the success rate of the project,and reducing the impact of default rate.The innovations of this paper are the following two points:first,on the form of research perspective,focusing on the potential investors uses information mechanism analysis the influence of borrowers' friend,and the reason behind this effect,in order to clearly understand the importance of social capital in economic transactions.Second,in the research content,this paper combines the social capital theory,the information cascade theory and the observation learning theory.Discussing the difference when the network exist two roles,friends and strangers.According to two g experiments,analyzing in different network scale,the different influence for herd behavior based on the information cascade of the bidding from friends,further enriching researches on peer-to-peer lending behavior theory.