IDEAS home Printed from https://ideas.repec.org/a/eee/beexfi/v41y2024ics2214635024000054.html
   My bibliography  Save this article

The role of job titles in online peer-to-peer lending: An empirical investigation on skilled borrowers

Author

Listed:
  • Davaadorj, Zagdbazar
  • Enkhtaivan, Bolortuya
  • Lu, Wenling

Abstract

We examine the role of borrowers' job titles in the online peer-to-peer (P2P) lending market. Using the U.S. Occupational Information Network database, we define skilled borrowers as the borrowers with their job titles in Job Zone 5, a group of occupations requiring individuals with the most extensive skill, knowledge, education and related experience. Analyzing data from Lending Club, one of the largest P2P platforms in the US, we find evidence that skilled borrowers are perceived as trustworthy and receive lower loan interest rate and default less frequently than do their non-skilled peers. Consistent with the signaling framework, our empirical results suggest that borrowers with certain job titles send effective signals and trustworthy job titles affect lending decisions and performance. This study sheds new light on the importance of borrowers' job titles in P2P lending.

Suggested Citation

  • Davaadorj, Zagdbazar & Enkhtaivan, Bolortuya & Lu, Wenling, 2024. "The role of job titles in online peer-to-peer lending: An empirical investigation on skilled borrowers," Journal of Behavioral and Experimental Finance, Elsevier, vol. 41(C).
    • Handle: RePEc:eee:beexfi:v:41:y:2024:i:c:s2214635024000054
    DOI: 10.1016/j.jbef.2024.100890
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S2214635024000054
    Download Restriction: no
    File URL: https://libkey.io/10.1016/j.jbef.2024.100890?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Keywords

    Fintech lending; Peer-to-peer lending;

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:beexfi:v:41:y:2024:i:c:s2214635024000054. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: https://www.journals.elsevier.com/journal-of-behavioral-and-experimental-finance .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.