Education Background?Work Experience And Investment Performance

In recent years,with the development of Internet finance,the P2 P lending model has been paid much attention.This kind of unsecured small loan model based on the internet is a new way to solve the financing of small and micro enterprises.It also opens up new avenues of investment for individual investors.However,online P2 P lending is still new in China.It develops rapidly but still faces many problems.Most of the past research shows that there is severe information asymmetry in the P2 P lending,which has a great impact on investors' investment screening and investment performance.The long-term development of P2 P online lending market depends on the ability of both borrowers and lenders to use limited means to reduce information asymmetry.The maturity and development of investors also play an important role in reducing information asymmetry in P2 P online lending.Education background and work experience,as two important characteristics of investor behavior,whether can help investors to identify investment opportunities,determine investment risks and improve investment performance,which will be the focus of this article.This paper uses all the loan orders and bidding records from "Renrendai" from October 2010 to July 2015 as the initial sample,and match the sample of 63,522 investors as the object of study.Using Logit model and Tobit model,this paper empirically analyzes the impact of investor's education background and work experience on investment success rate,investment default rate and investment return rate.The main findings of this paper are that the education background of investors can improve the investment success rate and investment return as well as reduce the investment default rate,indicating that there is an education premium in the P2 P online investment.While the work experience can reduce the default rate of investment to a certain extent,but it also reduce the t success rate and return on investment.This is because investors' overconfidence in their work experience will affect their investment judgment,and overconfidence will have a more significant impact on the investment performance than the positive impact of experience,resulting in a significant reduction in the investment success rate and return rate.