Social connections in online Lending: Evidence fromfield experiments
Difficulty inexercising formal (court-enforced) solutions of default still remains. Thisstudy explores in what extent and how the exposure of different types of socialconnections influences online borrower’s repayment behavior, including borrowerintrinsic repayment and company collection. Specifically, we divide “socialothers” as three types: family members, friends, and colleagues. Our predictionis that online borrowers are less likely to default when disclosing his/hercolleagues’ information than disclosing only family members’ information orclose friends’ information to the lender. For collection, sending the borrowersmessages eliciting the potential contacts increases the likelihood that theloans will be repaid. We test our theory in the context of Chinese onlinelending company with historical data and field experiments. Preliminaryresults provide evidence of our hypotheses, demonstrating the predictiveeffect of social connections and the potential importance of such interventionsin enhancing loan repayment for the online lending platform.
2019-5-8(周三)中午12 : 30