Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/176440 
Year of Publication: 
2016
Citation: 
[Journal:] Financial Innovation [ISSN:] 2199-4730 [Volume:] 2 [Issue:] 30 [Publisher:] Springer [Place:] Heidelberg [Year:] 2016 [Pages:] 1-6
Publisher: 
Springer, Heidelberg
Abstract: 
Background: We examine the signaling effect of borrowers' social media behavior, especially self-disclosure behavior, on the default probability of money borrowers on a peer-to-peer (P2P) lending site. Method: We use a unique dataset that combines loan data from a large P2P lending site with the borrower's social media presence data from a popular social media site. Results: Through a natural experiment enabled by an instrument variable, we identify two forms of social media information that act as signals of borrowers' creditworthiness: (1) borrowers' choice to self-disclose their social media account to the P2P lending site, and (2) borrowers' social media behavior, such as their social network scope and social media engagement. Conclusion: This study offers new insights for screening borrowers in P2P lending and a novel usage of social media information.
Subjects: 
P2P lending
Social media
Self-disclosure
Default
Difference-in-difference
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

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