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Survival or die: a survival analysis on peer‐to‐peer lending platforms in China
Author(s) -
Liu Qigui,
Zou Luxi,
Yang Xiaolin,
Tang Jinghua
Publication year - 2019
Publication title -
accounting and finance
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.645
H-Index - 49
eISSN - 1467-629X
pISSN - 0810-5391
DOI - 10.1111/acfi.12513
Subject(s) - china , business , peer to peer , shareholder , quality (philosophy) , actuarial science , finance , computer science , corporate governance , political science , world wide web , law , philosophy , epistemology
This study examines the probability of survival of online peer‐to‐peer (P2P) lending platforms in China. Our empirical findings show that shareholder's background, platforms’ risk management and institutional environment are three major factors that influence the probability of survival of P2P platforms in China. In addition, the effects of risk control and institutional environment are less pronounced in state‐owned P2P platforms. We also show that platforms that die from abscondence of owners tend to be more short‐lived than others, while platforms that die from liquidity problems are usually due to lack of high‐quality risk management techniques.