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What Determines University Students’ Online Consumer Credit? Evidence From China

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  • Yu Hao
  • Shuang Liu
  • Zhu Liduzi Jiesisibieke
  • Yi-Jie Xu

Abstract

In recent years, online consumer credit in China has boomed. Many Chinese undergraduates are interested in utilizing online consumer credit to meet their increasing consumption needs. However, the explosion in online loans to students has created many problems. Based on a survey of 286 undergraduate students from four universities in Beijing, the capital of China, this study provides an empirical analysis of the economic and social determinants of undergraduates’ consumer credit. The estimation results indicate that online consumer credit demand is positively related to years of schooling, monthly living expenses, financial support from the student’s university, and consumption preferences. However, other factors, including major field of study, highest level of parental education, and advertisements in the media and on campus, have negative influences on undergraduates’ online consumer credit. The findings have significant practical and policy implications. Specifically, it is necessary and important for the government, universities, and families to coordinate to guide and educate college students to utilize online loans properly and wisely.

Suggested Citation

  • Yu Hao & Shuang Liu & Zhu Liduzi Jiesisibieke & Yi-Jie Xu, 2019. "What Determines University Students’ Online Consumer Credit? Evidence From China," SAGE Open, , vol. 9(1), pages 21582440198, March.
    • Handle: RePEc:sae:sagope:v:9:y:2019:i:1:p:2158244019833594
    DOI: 10.1177/2158244019833594
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    References listed on IDEAS

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    Cited by:

    1. Liu, Liu & Zhang, Hua, 2021. "Financial literacy, self-efficacy and risky credit behavior among college students: Evidence from online consumer credit," Journal of Behavioral and Experimental Finance, Elsevier, vol. 32(C).
    2. Kerry Liu, 2020. "Chinese consumer finance: a primer," Frontiers of Business Research in China, Springer, vol. 14(1), pages 1-22, December.
    3. Chengfeng Zhang & Qiao Wu & Huijuan Wang & Xia Luo & Ning Wei & BingYu Pan & Jiajun Tong, 2021. "Factors Affecting Campus Loans in Western China," SAGE Open, , vol. 11(2), pages 21582440211, June.
    4. Bu, Di & Hanspal, Tobin & Liao, Yin & Liu, Yong, 2020. "Financial literacy and self-control in FinTech: Evidence from a field experiment on online consumer borrowing," SAFE Working Paper Series 273, Leibniz Institute for Financial Research SAFE.

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