Abstract
Abstract Background Online lending (P2P lending) is a type of internet finance mainly used to meet the financial needs of small and medium-sized enterprises and groups of individuals. It is a supplement to the traditional financial system. Method This paper uses PPDai.com—the most influential online lending platform in China—as a research object to study the leading factors that affect lenders’ loan trust and perception of information asymmetry. It also studies the impacts of these factors on lending intention. Results The results of this study show that the lending intention is mainly influenced by trust; perceived information asymmetry will affect trust, but it will not have a direct impact on lending intention. Trust is significantly affected by the borrowers’ reputation and information integrity. Information asymmetry has various causes, including structural assurance and legitimacy. This perception of information asymmetry significantly prevents the further development of online P2P lending. Conclusion The findings in this research imply that there are profound differences between online lending and online purchasing, thus the results obtained in the traditional e-commerce market cannot be applied in the field of online lending without verification.
Highlights
Online lending (P2P lending) is a type of internet finance mainly used to meet the financial needs of small and medium-sized enterprises and groups of individuals
The results of this study show that the lending intention is mainly influenced by trust; perceived information asymmetry will affect trust, but it will not have a direct impact on lending intention
The perception of information integrity has no significant influence on perceived information asymmetry; it was surprising for us to find that perceived information asymmetry has no significant impact on the lending intention
Summary
Online lending (P2P lending) is a type of internet finance mainly used to meet the financial needs of small and medium-sized enterprises and groups of individuals. Known as personal lending or peer-to-peer (P2P) lending, enables borrowers and lenders to trade directly via the Internet without using banks or other financial intermediaries. These are unsecured loans (Lin et al 2013). The P2P online lending market has developed rapidly since 2005; lending sites with slightly different modes of operation have appeared all over the world, including in America, Britain, Germany, Italy, Canada, Japan, and China
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
