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Investor Sentiment and the Return Rate of P2P Lending Platform

Author

Listed:
  • Wei Zhang

    (Tianjin University
    Tianjin University)

  • Yingxiu Zhao

    (Tianjin University)

  • Pengfei Wang

    (Tianjin University)

  • Dehua Shen

    (Tianjin University
    Tianjin University)

Abstract

This paper first constructs investor sentiment indices for the P2P lending market. Furthermore, the platform is divided based on five categories according to the P2P lending platform characteristics, such as the background of the platform and different transparency. We adopt a vector autoregressive to study the influence of investor sentiment on the return rate of different type of P2P platforms. The result shows that the platforms with lower transparency, higher return and the background of private are changed in the same direction with the sentiment. Therefore, as an external variable, investor sentiment can predict the stability of P2P lending platforms.

Suggested Citation

  • Wei Zhang & Yingxiu Zhao & Pengfei Wang & Dehua Shen, 2020. "Investor Sentiment and the Return Rate of P2P Lending Platform," Asia-Pacific Financial Markets, Springer;Japanese Association of Financial Economics and Engineering, vol. 27(1), pages 97-113, March.
    • Handle: RePEc:kap:apfinm:v:27:y:2020:i:1:d:10.1007_s10690-019-09284-2
    DOI: 10.1007/s10690-019-09284-2
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    Cited by:

    1. Wang, Chao & Zhang, Yue & Zhang, Weiguo & Gong, Xue, 2021. "Textual sentiment of comments and collapse of P2P platforms: Evidence from China's P2P market," Research in International Business and Finance, Elsevier, vol. 58(C).

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    More about this item

    Keywords

    Investor sentiment; Return rate; P2P lending platform;
    All these keywords.

    JEL classification:

    • G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates
    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets

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