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The Crystal Ball of User-Generated Content: Indication of P2P Lending Platform Failure

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  • Wenjie Huang

    (Shenzhen MSU-BIT University)

Abstract

User-generated content (UGC) provides us with a rich channel to aggregate public information. The study examines whether UGC could predict the failure of P2P lending platforms, which also depends on crowds’ involvement and contribution. Specifically, we examine a web forum with user comments on the P2P platforms and extract consumer opinion valence and opinion concentration with natural language processing (NLP) techniques. Time-dependent Cox regression analysis shows that consumer opinion has a strong prediction power for platform survival. If consumer opinions on a platform are positive and concentrated, a platform is more likely to survive. Besides, the two factors show a substitution effect to each other. This study deepens our understanding of UGC, which has significant implications for research. It also forms an application of information technology on risk assessment, by expanding the risk indicators to UGC-related information sources.

Suggested Citation

  • Wenjie Huang, 2025. "The Crystal Ball of User-Generated Content: Indication of P2P Lending Platform Failure," Information Systems Frontiers, Springer, vol. 27(2), pages 507-521, April.
    • Handle: RePEc:spr:infosf:v:27:y:2025:i:2:d:10.1007_s10796-023-10449-8
    DOI: 10.1007/s10796-023-10449-8
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    Keywords

    UGC; Text analysis; Platform risk assessment; P2P lending;
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