Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/212930 
Year of Publication: 
2019
Series/Report no.: 
BOFIT Discussion Papers No. 22/2019
Publisher: 
Bank of Finland, Institute for Economies in Transition (BOFIT), Helsinki
Abstract: 
We explore individual lender behaviour on Renrendai.com, a leading Chinese peer-to-peer (P2P) crowdlending platform. Using a sample of roughly 5 million investor-loan-hour observations and applying a high-dimension fixed effect estimator, we establish evidence of herding behaviour: the investors in our sample tend to prefer assets that had attracted strong interest in previous periods. The herding behaviour relates to both the experience of the investor and the length of time of each investment session. The results show that herding happens mostly in the first or final hour of long sessions. Herding behaviour is further confirmed by estimates at the listing-hour data.
JEL: 
G21
G40
G41
Persistent Identifier of the first edition: 
ISBN: 
978-952-323-304-1
Document Type: 
Working Paper

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