Can funding platforms’ self-initiated financial innovation improve credit availability? Evidence from China’s P2P market

ABSTRACT

In this article, we used loan transaction data from a Chinese Peer-to-Peer (P2P) platform and employed a Difference-In-Differences (DID) approach to detect the effect of a self-initiated financial innovation introduced via P2P borrowing and lending. We found that the self-initiated financial innovation improved the availability of credit.

KEYWORDS:

• P2P
• self-initiated
• financial innovation
• credit availability

JEL CLASSIFICATION:

• C25
• G23
• O22

Disclosure statement

No potential conflict of interest was reported by the authors.

Additional information

Funding

This work was supported by the National Nature Science Foundation of China [No. 71503165].