Platform Heterogeneity, Competitive Relationship, and Network Lending Efficiency

摘要

This study investigates the operation mechanism and pricing principle of network lending by comparing the characteristics of the financing mode of different financial platforms using theory of network economics. With data from over 400 P2P network lending platforms from October 2013 to May 2017, this study examines the financing efficiency of network lending platforms from the perspectives of transaction size and time. Empirical results show that the extrusion and demonstration effects of investors and borrowers are substantial, respectively, and competitive relationship changes over time. The identity background of these platforms influences network lending, but the efficiency of lending in a heterogeneous platform is minimal. It must reduce risks by optimizing the governance structure of network lending platforms.