Abstract
Online P2P lending has both e-commerce and finance characteristics: information asymmetry and risk. In this environment, trust is a key factor that promotes investment behavior. Understanding the influencing factors and forming mechanism of investor's trust in P2P lending is of great significance. This article adopts empirical research. Based on prior literature, the present study develops a model of China's P2P lending, to better understand the influencing factors of investor's trust in the platform. 200 valid questionnaires were collected from Wenjuanxing and Wechat. Then the data were analyzed by structural equation model. The results show that platform trust is very important and can affect investment willingness significantly. Among the institution-based antecedents, the perceived effectiveness of post-loan default measures can significantly affect platform trust; the perceived effectiveness of escrow service can positively affect platform trust; but the perceived effectiveness of pre-loan risk control can't. Among the characteristic-based antecedents, the perceived size has a significant impact on platform trust, while the perceived social capital has no significant effect. Among trust antecedents, institution-based trust is more important than characteristic-based trust.
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