Essays on the Economics of Peer-to-Peer Lending

Li, Tong (2022) Essays on the Economics of Peer-to-Peer Lending. Doctoral thesis, University of East Anglia.

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This thesis presents three empirical studies about the peer-to-peer (P2P) lending market. The first study examines whether the announcement of a government support policy could have an impact on the P2P lending market, using the U.K.’s introduction of a tax-free P2P individual savings account as an example. I find that after the announcement of the new policy, high-risk borrowers were attracted into the market and this resulted in losses to lenders. The second study is a discussion of how a Ponzi scheme affected Chinese P2P lending platforms. I find that after the Ezubao Ponzi scheme, platforms suffered a higher default risk and paid higher premiums to cover lenders’ losses, which resulted in negative returns for P2P lending platforms. The third study examines the lifecycle of the development of the P2P lending market in China. Based on the industry lifecycle (ILC) theory, I find that the P2P lending market in China experienced rapid growth and then a significant decline in 13 years. Even though the lifespan of the market is short, the market can still be pictured as having five phases of development. In line with theoretical predictions, the earliest entrants among P2P lending platforms survived the longest in the market.

Item Type: Thesis (Doctoral)
Faculty \ School: Faculty of Social Sciences > School of Economics
Depositing User: Chris White
Date Deposited: 20 Dec 2022 12:26
Last Modified: 20 Dec 2022 12:26


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