Study on the determinants of decision-making in peer-to-peer lending in South Korea

Dongwoo Kim, Kyuho Maeng, Youngsang Cho

Research output: Contribution to journalArticle

Abstract

In order to investigate the influences of borrower information on the decision-making, we collected data for 35,485 individual loan requests from Moneyauction, the largest P2P lending platform in South Korea, and analyzed the determinants of borrower and lender decision-making, adopting a logistic regression model. Specifically, we included various linguistic variables, generated by Korean Linguistic Inquiry and Word Count software, in order to analyze the effect of language use. Our research findings show that while a borrower’s demographic traits and linguistic style do have influential effects on participants’ decision-making, their relative importance is much lower than that of financial and loan request profiles.

Original languageEnglish
JournalAsia-Pacific Journal of Accounting and Economics
DOIs
Publication statusAccepted/In press - 2018 Jan 1

Fingerprint

Lending
Peer to peer
South Korea
Decision making
Loans
Demographics
Language
Logistic regression model
Relative importance
Linguistic variables
Software

All Science Journal Classification (ASJC) codes

  • Accounting
  • Finance
  • Economics and Econometrics

Cite this

@article{8db0d8151c7145f8876a63ba02f89951,
title = "Study on the determinants of decision-making in peer-to-peer lending in South Korea",
abstract = "In order to investigate the influences of borrower information on the decision-making, we collected data for 35,485 individual loan requests from Moneyauction, the largest P2P lending platform in South Korea, and analyzed the determinants of borrower and lender decision-making, adopting a logistic regression model. Specifically, we included various linguistic variables, generated by Korean Linguistic Inquiry and Word Count software, in order to analyze the effect of language use. Our research findings show that while a borrower’s demographic traits and linguistic style do have influential effects on participants’ decision-making, their relative importance is much lower than that of financial and loan request profiles.",
author = "Dongwoo Kim and Kyuho Maeng and Youngsang Cho",
year = "2018",
month = "1",
day = "1",
doi = "10.1080/16081625.2018.1540939",
language = "English",
journal = "Asia-Pacific Journal of Accounting and Economics",
issn = "1608-1625",
publisher = "City University of Hong Kong",

}

Study on the determinants of decision-making in peer-to-peer lending in South Korea. / Kim, Dongwoo; Maeng, Kyuho; Cho, Youngsang.

In: Asia-Pacific Journal of Accounting and Economics, 01.01.2018.

Research output: Contribution to journalArticle

TY - JOUR

T1 - Study on the determinants of decision-making in peer-to-peer lending in South Korea

AU - Kim, Dongwoo

AU - Maeng, Kyuho

AU - Cho, Youngsang

PY - 2018/1/1

Y1 - 2018/1/1

N2 - In order to investigate the influences of borrower information on the decision-making, we collected data for 35,485 individual loan requests from Moneyauction, the largest P2P lending platform in South Korea, and analyzed the determinants of borrower and lender decision-making, adopting a logistic regression model. Specifically, we included various linguistic variables, generated by Korean Linguistic Inquiry and Word Count software, in order to analyze the effect of language use. Our research findings show that while a borrower’s demographic traits and linguistic style do have influential effects on participants’ decision-making, their relative importance is much lower than that of financial and loan request profiles.

AB - In order to investigate the influences of borrower information on the decision-making, we collected data for 35,485 individual loan requests from Moneyauction, the largest P2P lending platform in South Korea, and analyzed the determinants of borrower and lender decision-making, adopting a logistic regression model. Specifically, we included various linguistic variables, generated by Korean Linguistic Inquiry and Word Count software, in order to analyze the effect of language use. Our research findings show that while a borrower’s demographic traits and linguistic style do have influential effects on participants’ decision-making, their relative importance is much lower than that of financial and loan request profiles.

UR - http://www.scopus.com/inward/record.url?scp=85055652353&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=85055652353&partnerID=8YFLogxK

U2 - 10.1080/16081625.2018.1540939

DO - 10.1080/16081625.2018.1540939

M3 - Article

AN - SCOPUS:85055652353

JO - Asia-Pacific Journal of Accounting and Economics

JF - Asia-Pacific Journal of Accounting and Economics

SN - 1608-1625

ER -