Research On The Influencing Factors Of China P2P Lending Industry Interest Rate Based On Panel Data

The rapid development of China's P2 P online lending industry in recent years not only satisfied medium,small and micro enterprises' financing requirements,as well as individual businesses',but also widened people's ways of wealth management.Interest rate is the core factor or P2 P online lending.The trend and fluctuant features of online lending interest rates directly reflect the development situation and operating law of P2 P online lending industry.The empirical tests of the main factors influencing P2 P online lending interest rate is of practical significance in exploring the rule of operation and risks behind this market,helping to improve investors' ability of risk identifying and helping P2 P online lending market gain healthy development.Firstly,this paper summarized relative literature home and abroad,then it introduced concepts and theories around P2 P online lending,followed by the history of development and regulation of P2 P online lending.After that,this paper analyzed the comprehensive trend of online lending interest rate and interest rate features by data with different background.Secondly,the paper makes the descriptive statistic analysis and the detailed description about research data.Based on the classification method of P2 P lending platform by the website of Home of Online Lending and the panel data with different backgrounds,this paper designs the influencing factors of online lending interest rate from the perspective of capital supply,risk mechanism and opportunity cost,then it empirically tests the main factors influencing P2 P online lending interest rate through software Eviews.Thirdly,the paper discussed the outcome.It found that the capital supply of online lending market comparatively outnumbers the capital demand,together with compliance cost caused by regulatory policy leads to the decreasement of P2 P online lending market interest rate.Individual differences are produced because of platforms' different background.The existence of competitive disadvantage of the private platform is likely to trigger the reverse selection of seeking borrowers who are willing to bear high borrowing costs.P2 P online lending interest rate is obviously affected by the lending period,and there are structural differences among different online lending platforms in the influence of the maturity factors.P2 P lending interest rate is affected by another form of internet finance regardless of the attributes of platforms,which shows that a significant co-movement effects exists inside the internet finance market.The influence of numbers of borrowers and outstanding balance on P2 P lending interest rate in not significant.Finally,combing with the present situation of P2 P online lending industry,this paper gave suggestions about facilitating healthy development and improving regulation of online lending market.