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The Impact of Online Word-of-Mouth and Default News on Trading Volumes in Peer-to-Peer Lending Platforms

Research output: Chapters, Conference Papers, Creative and Literary WorksRGC 32 - Refereed conference paper (with host publication)peer-review

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Abstract

This study explores the impact of default news of peer-to-peer (P2P) lending platforms on their trading volumes, particularly during a market downturn, and examines the moderating effect of online word-of-mouth (WOM). Using a dataset encompassing 694 P2P lending platforms from P2PEye.com, a premier third-party P2P information portal in China, this study employs advanced econometric techniques such as staggered difference-in-differences and difference-in-difference-in-differences analyses. The results show that default news diminishes trading volumes of P2P platforms, an effect that is more pronounced on platforms with a more positive WOM. Moreover, we find that platforms affiliated with banks or operating without Internet Content Provider (ICP) certification appear to be less susceptible to the negative effects of default news. This study offers novel perspectives on the interplay between default news and online WOM within in a declining market. It contributes to the existing body of literature and provides actionable insights for various stakeholders. © 2024 IEEE Computer Society. All rights reserved.
Original languageEnglish
Title of host publicationProceedings of the 57th Annual Hawaii International Conference on System Sciences
EditorsTung X. Bui
PublisherIEEE Computer Society
Pages2863-2872
ISBN (Print)9780998133171
DOIs
Publication statusPublished - Jan 2024
Event57th Hawaii International Conference on System Sciences (HICSS 2024) - Hilton Hawaiian Village Waikiki Beach Resort, Honolulu, United States
Duration: 3 Jan 20246 Jan 2024
https://hicss.hawaii.edu/

Publication series

NameProceedings of the Annual Hawaii International Conference on System Sciences
ISSN (Print)1530-1605
ISSN (Electronic)2572-6862

Conference

Conference57th Hawaii International Conference on System Sciences (HICSS 2024)
Abbreviated titleHICSS-57
PlaceUnited States
CityHonolulu
Period3/01/246/01/24
Internet address

Bibliographical note

Full text of this publication does not contain sufficient affiliation information. With consent from the author(s) concerned, the Research Unit(s) information for this record is based on the existing academic department affiliation of the author(s).

Research Keywords

  • default news
  • online word-of-mouth
  • peer-to-peer lending platforms
  • trading volume

Publisher's Copyright Statement

  • This full text is made available under CC-BY-NC-ND 4.0. https://creativecommons.org/licenses/by-nc-nd/4.0/

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