Determinants of default in p2p lending: the Mexican case
Autor(a) principal: | |
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Data de Publicação: | 2018 |
Tipo de documento: | Artigo |
Idioma: | eng |
Título da fonte: | Independent Journal of Management & Production |
Texto Completo: | http://www.ijmp.jor.br/index.php/ijmp/article/view/537 |
Resumo: | P2P lending is a new method of informal finance that uses the internet to directly connect borrowers with on-line communities. With a unique dataset provided by Prestadero, the largest on-line lending platform with national presence in Mexico, this research explores the effect of credit scores and other variables related to loan and borrower´s traits, in determining default behavior in P2P lending. Moreover, using a logistic regression model, it tested whether investors might benefit from screening loan applicants by gender after controlling for loan quality. The results showed that information provided by the platform is relevant for analyzing credit risk, yet not conclusive. In congruence with the literature, on a scale going from the safest to the riskiest, loan quality is positively associated with default behavior. Other determinants for increasing the odds of default are the payment-to-income ratio and refinancing on the same platform. On the contrary loan purpose and being a female applicant reduce such odds. No categorical evidence for differential default behavior was found for gender´s case-discrimination, under equal credit conditions. However it was found that controlling for loan quality, women have longer loan survival times than men. This is one of the first studies about debt crowdfunding in Latin America and Mexico. Implications for lenders, researchers and policy-makers are also discussed. |
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Independent Journal of Management & Production |
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Determinants of default in p2p lending: the Mexican casePeer-to-peer lendinggender discriminationPrestaderodefault riskloan survivalP2P lending is a new method of informal finance that uses the internet to directly connect borrowers with on-line communities. With a unique dataset provided by Prestadero, the largest on-line lending platform with national presence in Mexico, this research explores the effect of credit scores and other variables related to loan and borrower´s traits, in determining default behavior in P2P lending. Moreover, using a logistic regression model, it tested whether investors might benefit from screening loan applicants by gender after controlling for loan quality. The results showed that information provided by the platform is relevant for analyzing credit risk, yet not conclusive. In congruence with the literature, on a scale going from the safest to the riskiest, loan quality is positively associated with default behavior. Other determinants for increasing the odds of default are the payment-to-income ratio and refinancing on the same platform. On the contrary loan purpose and being a female applicant reduce such odds. No categorical evidence for differential default behavior was found for gender´s case-discrimination, under equal credit conditions. However it was found that controlling for loan quality, women have longer loan survival times than men. This is one of the first studies about debt crowdfunding in Latin America and Mexico. Implications for lenders, researchers and policy-makers are also discussed.Independent2018-03-02info:eu-repo/semantics/articleinfo:eu-repo/semantics/publishedVersionapplication/pdftext/htmltext/xmlhttp://www.ijmp.jor.br/index.php/ijmp/article/view/53710.14807/ijmp.v9i1.537Independent Journal of Management & Production; Vol. 9 No. 1 (2018): Independent Journal of Management & Production; 001-0242236-269X2236-269Xreponame:Independent Journal of Management & Productioninstname:Instituto Federal de Educação, Ciência e Tecnologia de São Paulo (IFSP)instacron:IJM&Penghttp://www.ijmp.jor.br/index.php/ijmp/article/view/537/774http://www.ijmp.jor.br/index.php/ijmp/article/view/537/805http://www.ijmp.jor.br/index.php/ijmp/article/view/537/1563Copyright (c) 2018 Carlos Eduardo Canfieldinfo:eu-repo/semantics/openAccessCanfield, Carlos Eduardo2020-08-24T00:57:16Zoai:www.ijmp.jor.br:article/537Revistahttp://www.ijmp.jor.br/PUBhttp://www.ijmp.jor.br/index.php/ijmp/oaiijmp@ijmp.jor.br||paulo@paulorodrigues.pro.br||2236-269X2236-269Xopendoar:2020-08-24T00:57:16Independent Journal of Management & Production - Instituto Federal de Educação, Ciência e Tecnologia de São Paulo (IFSP)false |
dc.title.none.fl_str_mv |
Determinants of default in p2p lending: the Mexican case |
title |
Determinants of default in p2p lending: the Mexican case |
spellingShingle |
Determinants of default in p2p lending: the Mexican case Canfield, Carlos Eduardo Peer-to-peer lending gender discrimination Prestadero default risk loan survival |
title_short |
Determinants of default in p2p lending: the Mexican case |
title_full |
Determinants of default in p2p lending: the Mexican case |
title_fullStr |
Determinants of default in p2p lending: the Mexican case |
title_full_unstemmed |
Determinants of default in p2p lending: the Mexican case |
title_sort |
Determinants of default in p2p lending: the Mexican case |
author |
Canfield, Carlos Eduardo |
author_facet |
Canfield, Carlos Eduardo |
author_role |
author |
dc.contributor.author.fl_str_mv |
Canfield, Carlos Eduardo |
dc.subject.por.fl_str_mv |
Peer-to-peer lending gender discrimination Prestadero default risk loan survival |
topic |
Peer-to-peer lending gender discrimination Prestadero default risk loan survival |
description |
P2P lending is a new method of informal finance that uses the internet to directly connect borrowers with on-line communities. With a unique dataset provided by Prestadero, the largest on-line lending platform with national presence in Mexico, this research explores the effect of credit scores and other variables related to loan and borrower´s traits, in determining default behavior in P2P lending. Moreover, using a logistic regression model, it tested whether investors might benefit from screening loan applicants by gender after controlling for loan quality. The results showed that information provided by the platform is relevant for analyzing credit risk, yet not conclusive. In congruence with the literature, on a scale going from the safest to the riskiest, loan quality is positively associated with default behavior. Other determinants for increasing the odds of default are the payment-to-income ratio and refinancing on the same platform. On the contrary loan purpose and being a female applicant reduce such odds. No categorical evidence for differential default behavior was found for gender´s case-discrimination, under equal credit conditions. However it was found that controlling for loan quality, women have longer loan survival times than men. This is one of the first studies about debt crowdfunding in Latin America and Mexico. Implications for lenders, researchers and policy-makers are also discussed. |
publishDate |
2018 |
dc.date.none.fl_str_mv |
2018-03-02 |
dc.type.driver.fl_str_mv |
info:eu-repo/semantics/article info:eu-repo/semantics/publishedVersion |
format |
article |
status_str |
publishedVersion |
dc.identifier.uri.fl_str_mv |
http://www.ijmp.jor.br/index.php/ijmp/article/view/537 10.14807/ijmp.v9i1.537 |
url |
http://www.ijmp.jor.br/index.php/ijmp/article/view/537 |
identifier_str_mv |
10.14807/ijmp.v9i1.537 |
dc.language.iso.fl_str_mv |
eng |
language |
eng |
dc.relation.none.fl_str_mv |
http://www.ijmp.jor.br/index.php/ijmp/article/view/537/774 http://www.ijmp.jor.br/index.php/ijmp/article/view/537/805 http://www.ijmp.jor.br/index.php/ijmp/article/view/537/1563 |
dc.rights.driver.fl_str_mv |
Copyright (c) 2018 Carlos Eduardo Canfield info:eu-repo/semantics/openAccess |
rights_invalid_str_mv |
Copyright (c) 2018 Carlos Eduardo Canfield |
eu_rights_str_mv |
openAccess |
dc.format.none.fl_str_mv |
application/pdf text/html text/xml |
dc.publisher.none.fl_str_mv |
Independent |
publisher.none.fl_str_mv |
Independent |
dc.source.none.fl_str_mv |
Independent Journal of Management & Production; Vol. 9 No. 1 (2018): Independent Journal of Management & Production; 001-024 2236-269X 2236-269X reponame:Independent Journal of Management & Production instname:Instituto Federal de Educação, Ciência e Tecnologia de São Paulo (IFSP) instacron:IJM&P |
instname_str |
Instituto Federal de Educação, Ciência e Tecnologia de São Paulo (IFSP) |
instacron_str |
IJM&P |
institution |
IJM&P |
reponame_str |
Independent Journal of Management & Production |
collection |
Independent Journal of Management & Production |
repository.name.fl_str_mv |
Independent Journal of Management & Production - Instituto Federal de Educação, Ciência e Tecnologia de São Paulo (IFSP) |
repository.mail.fl_str_mv |
ijmp@ijmp.jor.br||paulo@paulorodrigues.pro.br|| |
_version_ |
1797220491028594688 |