Research On The Influencing Factors And Path Of Borrower's Financing Ability In P2P Network Lending

P2P lending is an online transaction mode for borrowing through the Internet platform.It creates new financing channels for individuals and the small and micro enterprises,which is more convenient and efficient than traditional offline loan mode.However,due to the high level of information asymmetry in the P2P lending process,the borrower has a low degree of information disclosure.This has led to the fact that borrowers and lenders have insufficient information on each other,resulting in increased borrowing costs and difficulties for the borrower in financing.The lender will identify the basic information disclosed by the borrower and determine the risk when investing.Therefore,the borrower will present different financing capabilities in the loan market due to differences in information such as age,education,and income.Based on the research of previous scholars,this paper uses the transaction data from January 2015 to December 2017 on the Renrendai platform to find 14 main influencing factors affecting the borrower's financing capacity through multiple linear regression.On this basis,the principal component analysis is used to reduce the factors into into four principal components,the borrower's personal characteristics,credit characteristics,historical borrowing characteristics,and the target characteristics.Using the structual equation model to construct the theoretical model,explore the path relationships between various characteristics factors and the borrower's financing capacity.Empirical studies show that the borrower's age,income,working hours,academic qualifications,industry,number of certifications completed,historical borrowing performance,and the total amount of borrowings,interest rates,terms,and guarantee methods have a significant impact on the borrower's financing capacity.Futher explore the path relationships between various characteristics factors and the borrower's financing capacity,and we found that the borrower's credit characteristics has a significant positive effect on its financing capacity;and target characteristics have a significant negative effect on the borrower's financing capacity;The personal characteristics have a significant positive impact on its credit characteristics;historical borrowing characteristics have a positive impact on credit characteristics;and credit characteristics have a significant negative impact on target characteristics.Based on the research results,in order to improve borrower's financing capacity and promote the healthy development of P2P industry,the following suggestions are listed:(1)The platform should enhances information disclosure and builds a sound credit system to improve the quality of borrower's information;(2)The platform should introduces third-party guarantees to provide risk protection;(3)Raise industry barriers to entry and strengthen platform supervision.Severely punished the illegal platform to purify the market environment.