The Influence of Soft Information on Borrowing Acquisition and Default Risk in P2P Lending
MENG Na-na1，2 and SU Qin1
（1.University of International Business and Economics，Beijing100029，China；2.China Post Group Training Center，
Abstract：P2P lending provides investors and borrowers with direct connections through the Internet；it also establishes the debtor- creditor relation and complete the transaction process with the help of professional platform. Because of the inefficient “hard information”，the information asymmetry problem with P2P lending platform is very significant. For the information of borrowers，“borrowing description”provides borrowers with channels to provide further information about the borrowing；it also provides the investors with“soft information”to make sure of the borrowers’real borrowing purpose and credit status. Taking order data of Renrendai.com from 2014 to 2015 as the sample，with the help of Binary Choice Model，the authors carry out the empirical research on the influence of content and emotion in“borrowing description”on borrowers’borrowing acquisition and default risk. It is found that：after controlling such factors as borrowing issues，the basic information of borrowers，the credit of borrowers，year and regions，the completeness of“borrowing description”is helpful to increase the success rate of borrowing； while the existence of emotional response in“borrowing description”would significantly reduce the success rate of borrowing. But the role content and emotion plays in revealing borrowers’default risk is very limited，and we cannot find powerful support from the research fruits.
Key words：sharing finance；P2P；soft information；lending platform；borrowing acquisition；default risk