张海洋：“Too long to be true in the description? Evidence from a Peer-to- Peer platform in China” Research in International Business and Finance, 2019(50)
Too long to be true in the description? Evidence from a Peer-to- Peer platform in China
Zhiyong Li , Haiyang Zhang , Mei Yu , Hairan Wang
【 Abstract 】 This paper explores how loan descriptions provided by borrowers in ! uence both the lenders ’ and the platform ’ s behaviour in granting loans and setting interest rates. The empirical results show that textual length serves as a strong signal to identify the borrowers' quality. Strategic signalling theories cannot explain the borrowers' behaviour in China. We further show that the peer-to-peer platform is able to bene " t from taking description length into consideration and that there exists room f or investors to bene " t from this information.
【 Keywords 】 Peer-to-Peer lending ， Signalling ， Description length