Zhao, Y., Zhang, W., Li, Y. et al. (2 more authors) (2021) Crazy gamblers or cautious investors? Evidence from a peer‐to‐peer market in China. The Manchester School, 89 (5). pp. 507-525. ISSN 1463-6786
Abstract
By data of 10,357 individual investors from Renrendai.com, an established peer‐to‐peer (P2P) lending platform in China over the period of 2011–2014, we examine whether investors’ prior investment outcomes influence their subsequent risk‐taking behavior in the credit market. We find strong evidence that a prior trading loss induces greater subsequent risk‐taking. Specifically, investors decrease their number of bids and the bidding amount; and choose listings with a lower interest rate and higher credit grade. The investors who obtain more prior gains become more cautious and take on less posterior risk. Overall, this study complements the lack of relevant research in the credit market.
Metadata
Item Type: | Article |
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Authors/Creators: |
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Copyright, Publisher and Additional Information: | © 2020 The University of Manchester and John Wiley & Sons Ltd. This is an author-produced version of a paper subsequently published in The Manchester School. Uploaded in accordance with the publisher's self-archiving policy. |
Keywords: | Peer-to-peer lending; loss aversion; investor behaviour; prior return; risk-taking |
Dates: |
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Institution: | The University of Sheffield |
Academic Units: | The University of Sheffield > Faculty of Social Sciences (Sheffield) > Management School (Sheffield) |
Funding Information: | Funder Grant number Economic and Social Research Council ES/P004741/1 |
Depositing User: | Symplectic Sheffield |
Date Deposited: | 14 Sep 2020 12:43 |
Last Modified: | 03 Sep 2022 00:13 |
Status: | Published |
Publisher: | Wiley |
Refereed: | Yes |
Identification Number: | 10.1111/manc.12344 |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:165487 |