The Effects of Credit Certification: Evidence from Peer to Peer Lending Markets

Cangshu Li

《International Journal of Intelligent Technologies and Applied Statistics》 9卷4期 (2016/12) Pp. 323-345

https://doi.org/10.6148/IJITAS.2016.0904.05

摘要

This paper mainly investigates the effects of credit certification on the P2P market. The data, including detailed information for 399,809 loan applications, are collected from one of the largest Peer to Peer lending platforms in China. This paper chooses the probit model to conduct corresponding analyses. I find that credit certification plays an important role in increasing borrowers' probability of successful financing and decreasing the default rate and interest rates. Further, the findings are robust for both the credit rating and the information verifications. Consequently, enhancement on credit certification and promotion of credit rating will make borrowers get funds more easily and reduce financing cost significantly, and make lenders' investments more secure and reliable at the same time. Hence, the construction of credit information system is of important significance for optimizing peer to peer lending environment.

關鍵字

Credit certification ； Effects ； Peer to peer lending