Lenders’ Perceived Risk in Online P2P Lending : the Elaboration Likelihood Model Perspective

Research output: Conference Papers (RGC: 31A, 31B, 32, 33)32_Refereed conference paper (no ISBN/ISSN)Not applicable

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Author(s)

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Detail(s)

Original languageEnglish
Pages679-687
StatePublished - 29 Jun 2018

Conference

Title22nd Pacific Asia Conference on Information Systems (PACIS 2018)
LocationYokohama Royal Park Hotel
PlaceJapan
CityYokohama
Period26 - 30 June 2018

Abstract

Online peer-to-peer (P2P) lending platforms become a critical channel for financing. However, lenders suffer from economic lose due to dishonest behaviors of platforms and borrowers. By identifying risk correctly, lenders can make appropriate investment decisions to survive from risk and gain profits. Yet the existing empirical literature remains unclear about which factors influence lenders' risk perceptions and investment decision. Therefore, we draw on elaboration likelihood model to examine how lenders make their investment decisions away from problematic platforms and risky bids. Specifically, we identify argument frame as a central route of perceived risk, and platform reputation and source credibility as peripheral cues. We also examine roles of lender personal factors, i.e., cognitive capability and risk preference. We plan to conduct a laboratory experiment to collect data and test hypotheses. This study contributes to the cognition research in online financial products and provides insights for risk control and website design.

Research Area(s)

  • P2P lending, elaboration likelihood model, risk preference, investment decision

Bibliographic Note

Research Unit(s) information for this publication is provided by the author(s) concerned. Since this conference is yet to commence, the information for this record is subject to revision.

Citation Format(s)

Lenders’ Perceived Risk in Online P2P Lending : the Elaboration Likelihood Model Perspective. / Zhang Qiang, ; Wu Manli, ; Zhao J. Leon; Liang, Liang.

2018. 679-687 Paper presented at 22nd Pacific Asia Conference on Information Systems (PACIS 2018), Yokohama, Japan.

Research output: Conference Papers (RGC: 31A, 31B, 32, 33)32_Refereed conference paper (no ISBN/ISSN)Not applicable