Huang, J., Li, J. and Sena, V. (2023) Psychological distancing and language intensity in Peer-to-Peer lending. The Journal of Consumer Affairs, 57 (3). pp. 1281-1303. ISSN 0022-0078
Abstract
Peer-to-peer (P2P) lending is referred to as lending money to unknown borrowers directly through online platforms without using traditional financial intermediaries. We leverage insights from the literature on psychological distancing and affective intensity to argue that linguistic styles, as the manifestation of social psychological distance, have a negative impact on P2P funding success. Testing our arguments with data from a major Chinese P2P platform, we find that using too many “you” and negations (proxies for social psychological distance) in the borrower's description will dampen a lender's willingness to support a funding campaign. Moreover, when the social psychological distance is large, language intensity can be perceived as desperate, making a lender even less willing to support the funding campaign. Our research shed new light on the role of language in P2P funding success and has practical implications for lenders, borrowers and regulators in overcoming barriers in P2P lending.
Metadata
Item Type: | Article |
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Authors/Creators: |
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Copyright, Publisher and Additional Information: | © 2023 American Council on Consumer Interests. This is an author-produced version of a paper subsequently published in The Journal of Consumer Affairs. Uploaded in accordance with the publisher's self-archiving policy. |
Keywords: | social psychological distance; language intensity; P2P lending; language intensity |
Dates: |
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Institution: | The University of Sheffield |
Academic Units: | The University of Sheffield > Faculty of Social Sciences (Sheffield) > Management School (Sheffield) |
Depositing User: | Symplectic Sheffield |
Date Deposited: | 25 Apr 2023 16:35 |
Last Modified: | 03 Oct 2024 13:20 |
Status: | Published |
Publisher: | Wiley |
Refereed: | Yes |
Identification Number: | 10.1111/joca.12535 |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:198479 |
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