• Login
• Admin

Huang, Xinyu (2019) An empirical analysis of the determinants of borrowers’ default risk in peer-to-peer (P2P) lending in China. [Dissertation (University of Nottingham only)]

PDF - Registered users only - Requires a PDF viewer such as GSview, Xpdf or Adobe Acrobat Reader Download (546kB)

Abstract

As a new model of Internet finance, P2P lending provides a new financing channel to the individuals and SMEs who are facing financing difficulties. P2P lending has become an important supplement to China’s traditional financial model. But with the rapid development of P2P lending, its hidden risks cannot be ignored, especially the borrower’s default risk. This problem not only causes the loss of capital to the lenders but also has a great negative impact on the reputation of P2P lending, which seriously hinders the further development of P2P lending. Therefore, the main objectives of this dissertation are to analyze the reasons for the borrower’s default risk, the influencing factors of borrower’s default risk, and how to prevent the default risk.

Based on the previous research results, this dissertation uses logistic regression to test the influencing factors of borrower’s default risk. The results show that gender, marital status, working experience, and income are significantly positively associated with the default risk. Age, education level, loan amount, and credit rating are significantly negatively associated with the default risk. Finally, the writer proposed some suggestions to prevent the borrower’s default risk, hoping to contribute to the sustainable and healthy development of P2P lending in the future.

Keywords: P2P lending, logistic regression, credit risk, default risk

Item Type:	Dissertation (University of Nottingham only)
Depositing User:	Huang, Xinyu
Date Deposited:	02 Dec 2022 09:47
Last Modified:	02 Dec 2022 09:47
URI:	https://eprints.nottingham.ac.uk/id/eprint/57844

Actions (Archive Staff Only)

Edit View