On Investor Confidence And Industry Reputation

As one of many Internet financial systems,P2P network lending plays a complementary role in meeting the financial needs of individuals and small and micro enterprises.It also plays an increasingly important role in improving the utilization rate of idle funds and enriching the investment channels of residents.The monthly turnover of online lending has increased nearly 20 times since 2014,attracting more and more people to participate in it.However,in the past two years,the industry supervision has been gradually strengthened,the market fever has gradually declined,and the number of online lending platforms has also decreased month by month.The emergence of "thunderstorm" in P2P industry has seriously affected the normal financial order and social stability.Investor confidence in the market has been constantly hit,and the sense of market identity has also declined rapidly.This paper analyses the influencing factors of investor confidence in the P2P market from the perspective of industry reputation,and discusses the influence of government policies,news media reports and information on industry issues on the market from the theoretical level.By constructing the "worry index" to measure investor confidence in the P2P market,we further control the cross-market transmission effect between the P2P network lending and other financial and non-financial markets,as well as macro-environmental factors.We use ADL auto-regressive distribution lag model and step-by-step elimination regression method for empirical test.The empirical results prove the validity of the worry index constructed by the average bid-fulfillment time,market lending ratio and turnover as the proxy variable of investor confidence in the P2P market,and find that the reputation of the P2P network lending industry plays a strong guiding role in market investor confidence.Among them,the promulgation of government policies,the increase of problem platforms and the increase of negative news reports will increase investors'concerns about the market,thereby reducing their sense of identity and trust in the market,while the stock,bond and real estate markets mostly enhance investors'investment willingness in the P2P market through wealth spillover effect.