TY - JOUR
T1 - Why does regional information matter? evidence from peer-to-peer lending
AU - Wang, Tong
AU - Zhao, Sheng
AU - Shen, Xin
N1 - Publisher Copyright:
© 2020 Informa UK Limited, trading as Taylor & Francis Group.
PY - 2021
Y1 - 2021
N2 - In this paper, we study regional discrimination in a peer-to-peer lending scenario and provide novel empirical evidence for theories of soft information collection and information cost. We find that the regional information matters for borrowers' funding probabilities and that discrimination is profit-oriented or taste-oriented depending on the specific region. Moreover, using borrowers' birthplace as an instrumental variable, we find no evidence of genuine discrimination based purely on region in the peer-to-peer lending market.
AB - In this paper, we study regional discrimination in a peer-to-peer lending scenario and provide novel empirical evidence for theories of soft information collection and information cost. We find that the regional information matters for borrowers' funding probabilities and that discrimination is profit-oriented or taste-oriented depending on the specific region. Moreover, using borrowers' birthplace as an instrumental variable, we find no evidence of genuine discrimination based purely on region in the peer-to-peer lending market.
KW - Peer-to-peer lending
KW - information cost theory
KW - regional discrimination
UR - http://www.scopus.com/inward/record.url?scp=85078480952&partnerID=8YFLogxK
U2 - 10.1080/1351847X.2020.1720262
DO - 10.1080/1351847X.2020.1720262
M3 - Article
AN - SCOPUS:85078480952
SN - 1351-847X
VL - 27
SP - 346
EP - 366
JO - European Journal of Finance
JF - European Journal of Finance
IS - 4-5
ER -