The Empirical Analysis Of The Factors Affectingthe Herding Behavior In P2P Online Lending

P2P network lending market with small,short-term,unsecured,non-mediated characteristics provides good financing channels for low-income and self-employed population thus obtains the rapid development.However,because of the asymmetric information in the market,the unique trading mechanism of the platform and the mentality of herd,the investor herding behavior is caused,which aggravates the security of the platform fund.The traditional theory of finance considers herd behavior as a blind follow-up behavior,which is detrimental to the healthy development of the market.Herzenstein et al.(2010),Zeng Jianghong and Yang Shuai(2014)think that herd behavior exists “rational” side.In asymmetric information environment,investors will make their private information public by observing other investors' decision behavior.When the information is more abundant in the market,the herd behavior of the investor will also be weakened(Banerjee,1992).Thus,based on the BHW model under asymmetric information and the characteristics of Peer-to-peer network loan platform,this paper discusses the main influencing factors of herding behavior in P2 P network loan market,and promotes the healthy development of network loan platform.This article uses Python to write the web crawler program,grabbed 28164 real effective transaction data as an empirical sample from “PaiPai Dai” website from October 26,2016 to June24,2017,and use logistic regression model to verify the existence of herd behavior in P2 P network loan market in China;and on the basis,learning from the research method of Liao Li(2014),this paper tries to construct Bid_herd,a sheep behavior intensity variable,and empirically analyzes the influencing factors of herding behavior in P2 P net loan market.The empirical results show that the investors' investment decisions in China's P2 P network loans will be affected by the behavior of other investors in the market,that is,the herd behavior exists;Borrowing orders loan progress,the current number of bidders and the borrower's credit rating,educational status,the number of information on the platform to pass the certification and whether the photos uploaded on the personal home page will affect the market strength of herd behavior.According to the above empirical results,this paper suggests to ease market information asymmetry from the following four aspects: perfecting market information disclosure mechanism,implementing credit information service in P2 P net loan market,improving financial literacy of investors and strengthening government supervision and self-discipline of the industry,and thus weakening the herd behavior in the P2 P network loan market,promote the healthy development of network loan platform.