Gender Discrimination towards Borrowers in Online P2PLending

Online peer-to-peer (P2P) lending has developed fast around the world in recent years; however, studies regarding gender discrimination and its rationality for developing countries are limited. Gender discrimination towards borrowers and its rationality in P2P lending in China are studied in this paper. Using data collected from PPdai.com, one of the largest P2P lending platforms in China, we found that, female borrowers are less likely to be funded than male borrowers, but their default rates are lower. Such results suggested that there is significant gender discrimination in P2P lending market in China, but such discrimination is out of prejudice rather than from rational reasoning. Eliminating such gender discrimination is not only beneficial to female borrowers, but also helpful for improving returns of lenders

Essays on Corporate Finance and Credit Market

No abstract availableThe first paper explores how the introduction of reference information affects the outcomes in the private lending market. From 2012, the Chinese government gradually built private lending registration service centres (Pcentres) in different cities. I apply Difference-In-Difference (DID) analysis based on the online Peer-to-Peer (P2P) lending data from Renrendai. To address the endogeneity, I use the timing of local private lending problem in the Chinese-style political cycle to instrument the decision to introduce Pcentres. Results show that the introduction of Pcentres pushes up the P2P loan trading volume and the success rate of applications. Remarkably, Pcentres reduce the dispersion of contract terms and this effect is mainly driven by the less educated. Furthermore, it shows Pcentres improve the loan repayment performance. This research reports novel evidence that the government can build common language among agents as public goods to guide the informal financial market. The second paper examines the impact of green attention shocks on the market integration of corporate bond and equity markets and discusses the efficiency of the reallocation of funding caused by green attention shocks. The third paper empirically shows that stronger investor protection improves the efficiency of contractual resolutions of financial distress

Cyberfinancing for Economic Justice

This Article argues for the socially optimal regulation of online peer-to-peer (P2P) lending and crowdfunding to advance economic justice in the United States. Peer-to-peer lending websites, such as Prosper. com orKiva.org, facilitate lending transactions between individuals online with-out the involvement of a traditional bank or microfinance institution. Crowdfunding websites, such as Kickstarter. com, enable individuals to obtain financing from large numbers of contributors at once through an open online request for funds. These web-based transactions, and the intermediary organizations that facilitate them, constitute emerging cyberfinancing markets. These markets connect many individuals at once, across class, race, ethnicity, nationality, space, and time in an interactive and dynamic way. During a time of significant economic distress in the United States, these markets also represent an unprecedented economic development opportunity for historically marginalized economic actors. Yet, no legal scholar has addressed the implications of these developments for economic justice in the United States. Drawing from the fields of law and geography, social networking theory, and comparative institutional analysis, this Article conceptualizes these new markets as cyberspaces, similar to geographic spaces, whose laws, norms, and rules will partially determine who will benefit from the economic opportunities that arise in these spaces. The recently enacted Jumpstart Our Business Startups (JOBS) Act does not facilitate substantial distributive justice in crowdfunding markets. The U.S. Government Accountability Office (GAO), which produced a report in response to the 2010 Dodd-Frank Wall Street Reform Act\u27s mandate that it study theP2P lending industry, has also failed to recommend a regulatory structure that will facilitate economic justice. This Article recommends that a range of federal regulators such as the U.S. Securities and Exchange Commission (SEC), the new Consumer Financial Protection Bureau (CFPB), and the U.S. Treasury Department (Treasury), should collaborate to implement a revised Community Reinvestment Act (CRA) that would promote economic justice in these markets

Crowdlending in Microfinance: A New Source of Debt Capital

This dissertation combines aspects from classical microfinance and online commercial crowdlending in order to investigate several aspects which are important, but still under-researched in the field of crowdlending through socially-oriented investors in microfinance. Kiva’s intermediation-based microfinancing model has extensively been researched regarding several topics. However, we noticed a lack of knowledge regarding the credit default risk of microborrowers which results in financial losses for investors. Additionally, very little is known about the MFIs which are the core of this microfinancing model. But this is important as MFIs are simultaneously financial intermediaries and recipients of interest-free capital. This thesis addresses these two gaps in empirical research. It aims to shed light on, firstly, the determinants of credit default risk and, secondly, the characteristics of the MFIs in the context of microfinancing through the worldwide crowd. The third part of this dissertation provides very first insights on the funding behavior of investors who enable microloans requested in developed countries via Kiva’s direct peer-to-peer model without intermediation. The research projects contribute to the literature on microfinance and crowdlending through examining MFIs refinancing their loan portfolio with interest-free debt capital, analyzing credit risk factors and discussing the funding behavior of investors who enable microloans in a developed country

Sustainability, Digital Transformation and Fintech: The New Challenges of the Banking Industry

In the current competitive scenario, the banking industry must contend with multiple challenges tied to regulations, legacy systems, disruptive models/technologies, new competitors, and a restive customer base, while simultaneously pursuing new strategies for sustainable growth. Banking institutions that can address these emerging challenges and opportunities to effectively balance long-term goals with short-term performance pressures could be aptly rewarded. This book comprises a selection of papers addressing some of these relevant issues concerning the current challenges and opportunities for international banking institutions. Papers in this collection focus on the digital transformation of the banking industry and its effect on sustainability, the emergence of new competitors such as FinTech companies, the role of mobile banking in the industry, the connections between sustainability and financial performance, and other general sustainability and corporate social responsibility (CSR) topics related to the banking industry. The book is a Special Issue of the MDPI journal Sustainability, which has been sponsored by the Santander Financial Institute (SANFI), a Spanish research and training institution created as a collaboration between Santander Bank and the University of Cantabria. SANFI works to identify, develop, support, and promote knowledge, study, talent, and innovation in the financial sector

Alternative Finance for Small and Medium-sized Enterprises

Die Dissertation besteht aus fünf unabhängigen Artikel mit verschiedenen Koautoren. Im Folgenden werden die Artikel kurz vorgestellt. 1.Artikel: Description-text related soft information in peer-to-peer lending -- Evidence from two leading European platforms In diesem Artikel analysieren wir die Rolle von weichen Faktoren für die Erklärung der Finanzierungs- und der Ausfallwahrscheinlichkeit in P2P-Lending. Wir nutzen Daten von zwei führenden europäischen P2P-Lending-Plattformen, Auxmoney und Smava, und leiten verschiedene weiche Faktoren aus dem Beschreibungstext des Kreditantrages ab. Wir zeigen, dass der Einfluss von weichen Faktoren vom Plattform-Design abhängt. Bei Auxmoney, der weniger restriktiven Plattform, hängen weiche Faktoren signifikant mit der Finanzierungswahrscheinlichkeit zusammen. Bei Smava hingegen besteht lediglich ein Zusammenhang zwischen zwei Schlagwörtern und der Finanzierungswahrscheinlichkeit. Durch die Untersuchung von abgeschlossenen Krediten von beiden Plattformen können wir außerdem zeigen, dass weiche Faktoren kaum mit der Ausfallwahrscheinlichkeit zusammen hängen. Harte Informationen, insbesondere der Zinssatz, sind hier von großer Bedeutung. Insgesamt deutet unsere Untersuchung darauf hin, dass weiche Faktoren Investoren dabei helfen, effektiv über die Kreditwürdigkeit von potentiellen Kreditnehmern zu entscheiden, wenn keine harten Faktoren zur Verfügung stehen. Sofern auch harte Faktoren bereitgestellt werden, verlassen sich Investoren auf diese Informationen, um zu entscheiden, in welche Kredite sie investieren. 2. Artikel: German Mittelstand Bonds: Yield Spreads and Liquidity Seit der Einführung von Mittelstandsanleihen sind die am Markt beobachteten Yield Spreads beständig gewachsen. In diesem Artikel untersuchen wir empirisch wie wichtig die Illiquidität dieser Anleihen für die Erklärung des Yield Spreads ist. Hierfür analysieren wir 92 Mittelstandsanleihen, um die Größe der Liquiditätsprämie zu bestimmen. Wir verwenden zwei verschiedenen Liquiditäts-Maße: den LOT liquidity estimate und die Geld-Brief-Spanne. Zudem kontrollieren wir für das Ausfallrisiko der Anleihen und Unternehmenscharakteristika. Unsere Ergebnisse zeigen, dass Investoren tatsächlich eine Liquiditätsprämie verlangen. Diese Prämie ist für Mittelstandsanleihen hoch und ist ungefähr doppelt so groß wie die Liquiditätsprämie von spekulativen US-Unternehmensanleihen. 3. Artikel: Pricing in the online invoice trading market: First empirical evidence Die Möglichkeit, ausstehende Rechnungen über Online-Invoice-Trading vorzufinanzieren, stellt für KMU eine Change dar, kurzfristige Verbindlichkeiten aufzunehmen. Das Ziel dieses Artikels ist es zu untersuchen, ob die Gefahr von Zahlungsschwierigkeiten adäquat in den Preisen auf diesen Online-Invoice-Trading-Plattformen wiedergespiegelt wird. Wir nutzen Daten von der britischen Plattform MarketInvoice, dem Marktführer im Bereich Onlince-Invoice-Trading und untersuchen, welche Faktoren die Ausfallwahrscheinlichkeit und die Ausfallrate erklären können. Wir zeigen, dass der Zinssatz ein wichtiger Prädiktor sowohl der Ausfallwahrscheinlichkeit als auch der Ausfallrate ist. Außerdem hängen die Duration und der finanzierte Anteil der Rechnungen signifikant mit der Ausfallwahrscheinlichkeit zusammen. Da die Plattform im Beobachtungszeitraum den Preismechanismus geändert hat, haben wir außerdem die Möglichkeit, zwei Preismechanismen zu vergleichen. Unsere Ergebnisse zeigen, dass die Ausfallwahrscheinlichkeit während der Auktionsperiode höher war. Allerdings war auch die Nettorendite der Investoren in diesem Zeitraum höher. 4. Artikel: Dynamics of Investor Communication in Equity Crowdfunding Equity-Crowdfunding gibt privaten Investoren die Möglichkeit, in (sehr riskante) Start-ups zu investieren. Die Start-ups, die sich über Equity-Crowdfunding finanzieren, können freiwillig mit ihren Investoren durch das Veröffentlichen von Updates kommunizieren. Die bisherige Literatur impliziert, dass Updates die Investitionen in die jeweilige Crowdfunding-Kampagne erhöhen. Wir untersuchen das Kommunikationsverhalten von Start-ups während und nach der Finanzierungsphase und analysieren, ob Start-ups strategisch Updates mit einer gewissen Sprache oder einem gewissen Inhalt veröffentlichen. Dafür verwenden wir händisch gesammelte Daten von den beiden größten deutschen Equity-Crowdfunding-Plattformen Companisto und Seedmatch. Wir finden Hinweise darauf, dass Start-ups strategisch mit ihren Investoren kommunizieren. 5. Artikel: Paralyzed by shock and confused by glut: The portfolio formation behavior of peer-to-business lending investors In diesem Artikel untersuchen wir das Investorenverhalten auf einer Peer-to-Business-Lending-Plattform und finden Hinweise darauf, dass Investoren an zwei neuen Investmentfehlern leiden: dem default shock bias und dem deep market bias. Investoren schrecken von Investitionen in neue Kredite zurück und hören somit auf, ihr Portfolio zu diversifizieren wenn sie einen Kreditausfall erlebt haben. Dieses Verhalten resultiert in einer Verschlechterung des Rendite-Risiko-Profils des Portfolios. Außerdem scheinen Investoren von einer großen Auswahl an verschiedenen Kreditprojekten überfordert zu sein. Dementsprechend investieren sie weniger in neue Kredite. Dies wirkt sich wiederum negativ auf das Rendite-Risiko-Profil des Portfolios aus. Erfahrung auf der Plattform reduziert den Effekt des deep market bias. Um das Rendite-Risiko-Profil der Portfolios zu untersuchen, schätzen wir Value-at-Risk-Maße und leiten den risk-adjusted return on capital (RAROC) ab

Advances in Crowdfunding

This open access book presents a comprehensive and up-to-date collection of knowledge on the state of crowdfunding research and practice. It considers crowdfunding models and their different manifestations across a variety of geographies and sectors, and explores the perspectives of fundraisers, backers, platforms, and regulators. Gathering insights from a wide range of influential researchers in the field, the book balances concepts, theory, and case studies. Going beyond previous research on crowdfunding, the contributors also investigate issues of community, sustainability, education, and ethics. A vital resource for anyone researching crowdfunding, this book offers readers a deep understanding of the characteristics, business models, user-relations, and behavioural patterns of crowdfunding

Digital Entrepreneurship

This open access book explores the global challenges and experiences related to digital entrepreneurial activities, using carefully selected examples from leading companies and economies that shape world business today and tomorrow. Digital entrepreneurship and the companies steering it have an enormous global impact; they promise to transform the business world and change the way we communicate with each other. These companies use digitalization and artificial intelligence to enhance the quality of decisions and augment their business and customer operations. This book demonstrates how cloud services are continuing to evolve; how cryptocurrencies are traded in the banking industry; how platforms are created to commercialize business, and how, taken together, these developments provide new opportunities in the digitalized era. Further, it discusses a wide range of digital factors changing the way businesses operate, including artificial intelligence, chatbots, voice search, augmented and virtual reality, as well as cyber threats and data privacy management. “Digitalization mirrors the Industrial Revolution’s impact. This book provides a complement of perspectives on the opportunities emanating from such a deep seated change in our economy. It is a comprehensive collection of thought leadership mapped into a very useful framework. Scholars, digital entrepreneurs and practitioners will benefit from this timely work.” Gina O’Connor, Professor of Innovation Management at Babson College, USA “This book defines and delineates the requirements for companies to enable their businesses to succeed in a post-COVID19 world. This book deftly examines how to accomplish and achieve digital entrepreneurship by leveraging cloud computing, AI, IoT and other critical technologies. This is truly a unique “must-read” book because it goes beyond theory and provides practical examples.” Charlie Isaacs, CTO of Customer Connection at Salesforce.com, USA "This book provides digital entrepreneurs useful guidance identifying, validating and building their venture. The international authors developed new perspectives on digital entrepreneurship that can support to create impact ventures.” Felix Staeritz, CEO FoundersLane, Member of the World Economic Forum Digital Leaders Board and bestselling author of FightBack, German

Digital Entrepreneurship

This open access book explores the global challenges and experiences related to digital entrepreneurial activities, using carefully selected examples from leading companies and economies that shape world business today and tomorrow. Digital entrepreneurship and the companies steering it have an enormous global impact; they promise to transform the business world and change the way we communicate with each other. These companies use digitalization and artificial intelligence to enhance the quality of decisions and augment their business and customer operations. This book demonstrates how cloud services are continuing to evolve; how cryptocurrencies are traded in the banking industry; how platforms are created to commercialize business, and how, taken together, these developments provide new opportunities in the digitalized era. Further, it discusses a wide range of digital factors changing the way businesses operate, including artificial intelligence, chatbots, voice search, augmented and virtual reality, as well as cyber threats and data privacy management. “Digitalization mirrors the Industrial Revolution’s impact. This book provides a complement of perspectives on the opportunities emanating from such a deep seated change in our economy. It is a comprehensive collection of thought leadership mapped into a very useful framework. Scholars, digital entrepreneurs and practitioners will benefit from this timely work.” Gina O’Connor, Professor of Innovation Management at Babson College, USA “This book defines and delineates the requirements for companies to enable their businesses to succeed in a post-COVID19 world. This book deftly examines how to accomplish and achieve digital entrepreneurship by leveraging cloud computing, AI, IoT and other critical technologies. This is truly a unique “must-read” book because it goes beyond theory and provides practical examples.” Charlie Isaacs, CTO of Customer Connection at Salesforce.com, USA "This book provides digital entrepreneurs useful guidance identifying, validating and building their venture. The international authors developed new perspectives on digital entrepreneurship that can support to create impact ventures.” Felix Staeritz, CEO FoundersLane, Member of the World Economic Forum Digital Leaders Board and bestselling author of FightBack, German