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Does university reputation matter? Evidence from peer-to-peer lending

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  • Li, Jianwen
  • Hu, Jinyan

Abstract

Using the sample of listings from one of the famous peer-to-peer lending platforms in China, Renrendai.com, we investigate the role of university reputation in peer-to-peer lending. The empirical results show that it is easier for borrowers who graduated from prestigious universities to obtain the requested loans and to have a higher fraction of listing funded. Borrowers who graduated from top ranking universities usually have a lower possibility of loan default and a lower ratio of loan default. Overall, our findings suggest that the university reputation matters in peer-to-peer lending as it can predict lenders’ and borrowers’ behaviors.

Suggested Citation

  • Li, Jianwen & Hu, Jinyan, 2019. "Does university reputation matter? Evidence from peer-to-peer lending," Finance Research Letters, Elsevier, vol. 31(C), pages 66-77.
    • Handle: RePEc:eee:finlet:v:31:y:2019:i:c:p:66-77
    DOI: 10.1016/j.frl.2019.04.004
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    Cited by:

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    3. Natnara Chulawate & Supaporn Kiattisin, 2023. "Success Factors Influencing Peer-to-Peer Lending to Support Financial Innovation," Sustainability, MDPI, vol. 15(5), pages 1-16, February.
    4. Zhao, Guangchuan & Cao, Xinbang & Ma, Chao, 2020. "Accounting for horizontal inequity in the delivery of health care: A framework for measurement and decomposition," International Review of Economics & Finance, Elsevier, vol. 66(C), pages 13-24.
    5. Yao, Wenyun & Wei, Jiahui & Shen, Yongjian & Deng, Yan & Kutan, Ali M., 2020. "Does celebrity spokesperson signal firm performance? Evidence from a drug scandal in China," Finance Research Letters, Elsevier, vol. 34(C).
    6. Jianwen Li & Jinyan Hu, 2022. "Migrants and default: Evidence from China," International Review of Finance, International Review of Finance Ltd., vol. 22(3), pages 472-505, September.

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    More about this item

    Keywords

    Peer-to-peer lending; University reputation; Decision making; Renrendai.com;
    All these keywords.

    JEL classification:

    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors

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