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Mass shootings and peer-to-peer lending

Author

Listed:
  • García, Raffi E.
  • Li, Sen
  • Al Mahmud, Abdullah

Abstract

This paper analyzes the effect of mass shootings on peer-to-peer lending behavior. Using U.S. data from 2014–2018, we implement an event study methodology to exploit the quasi-experimental nature of mass-shooting incidents on local credit markets. Our findings indicate a short-term tightening of local credit conditions (higher interest rates and lower loan amounts) immediately after a mass shooting in affected communities relative to those in non-affected communities. These findings highlight that online credit marketplaces are reactive to random local shocks of violence at the community level and their corresponding public and media attention.

Suggested Citation

  • García, Raffi E. & Li, Sen & Al Mahmud, Abdullah, 2022. "Mass shootings and peer-to-peer lending," Finance Research Letters, Elsevier, vol. 47(PA).
    • Handle: RePEc:eee:finlet:v:47:y:2022:i:pa:s1544612321005444
    DOI: 10.1016/j.frl.2021.102606
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    References listed on IDEAS

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    More about this item

    Keywords

    FinTech; Mass shooting; Peer-to-peer lending; Access to credit; Crowdfunding;
    All these keywords.

    JEL classification:

    • G0 - Financial Economics - - General
    • G20 - Financial Economics - - Financial Institutions and Services - - - General
    • G40 - Financial Economics - - Behavioral Finance - - - General
    • G50 - Financial Economics - - Household Finance - - - General

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