Work detail

Impact of Regional Differences on P2P Lending, Evidence from China

Author: Mgr. Na Liang
Year: 2019 - summer
Leaders: Mgr. Magda Pečená Ph.D.
Work type: Masters
Language: English
Pages: 72
Awards and prizes:
Abstract: Taking the representative P2P lending platform Renrendai as an example, this
paper focuses on the impact of borrower’s region on the behavior of lenders and
borrowers in the market. According to the Chinese six geographical regions the
borrowers are from, this paper empirically analyzes the difference of success rate of
borrowing and default rate in the six regions using the binary logistic regression model
and further studies the reasons behind the regional difference. The result shows that the
impact of regional difference is significant and the borrower from northern China are
more likely to fund successfully, but the impact of regional difference on the default
rate is insignificant, and the economic, financial and education development level in
regions have a significant impact on the success rate of borrowing. This paper studies
the regulatory differences of P2P platforms in various regions of China, the result shows
that eastern China, central and southern China, and Beijing (in northern China) have
paid more attention and importance to the regulation of P2P platforms.




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