The Effect Of Borrowing And Investing Experience On The Success Of Funding In Online Lending

As a new model of Internet Finance and a typical application of Financial Innovation,Peer-to-Peer online lending has developed rapidly in China in recent years.It can provide convenient financing service for low-income individuals and small or micro enterprise,so it has characteristics of inclusive finance,which attracted extensive research by scholars.Besides,since the frequent occurrence of risk events in China's P2 P online lending platform since 2017,many investors have suffered losses,which has also caused attentions of regulators and ordinary masses.Because of the flaw of information disclosure and credit evaluation system of the P2 P online lending platform,there is a serious information asymmetry in this market,which also cause the low success rate of online lending.The existing literature studies the influencing factors of the success of funding in online lending from the aspects of basic attributes of borrowing,personal information of borrowers and social capital,but ignore the borrowing and lending experience of borrowers in the platform.And the research about traditional financial market has shown that experience can affect the behaviors of investors significantly.Therefore,this paper study from the perspective of the borrowers' experience and takes the real transaction data of the “Renrendai” platform as the research object,using descriptive statistical analysis,logistic regression and multiple linear regression methods to study whether the borrower's borrowing experience,investment experience and repayment records will affect the possibility of successful borrowing,so we can increase the understanding of investors' investing preference.It's a kind of complement to existing research.Through empirical research,we found that the borrower's borrowing experience in the online lending platform can significantly affect the likelihood of successful borrowing.Specifically,the borrower's previous successful borrowing experience can significantly increase the number of bidding participants and the possibility of successful borrowings.Borrowing experience,investment experience and overdue repayment records can reduce the number of bidders and the success rate of their borrowings.And we prove the robustness of the above conclusions through a robustness test.Through research,we have also made relevant recommendations for P2 P online lending platforms and regulatory agencies.For the P2 P online lending platform,it is necessary to build the internal data sharing system,improve the post-loan management,and pay attention to the development of offline business;for the regulatory agencies,it is important to improve the information disclosure regulation for the P2 P online lending platform,establish perfect admission and exit mechanisms,strengthen the management of borrowers' breach of contract,and ameliorate relevant laws and regulations.