TAILIEUCHUNG - Occupational identity discrimination in peer-topeer lending

Using data collected from a leading P2P platform in China, this paper empirically tests the discrimination of investors on the occupational identity of borrowers in online lending. I find that P2P investors discriminate against borrowers who are salary earners in terms of occupational identity while preferring borrowers who are private entrepreneurs. Moreover, this kind of discrimination can be found in borrowers both with high credit ratings and low credit ratings. The findings also imply that the occupational identity of borrowers plays a role of moderating the relationship between the credit rating and the probability of successful funding. Compared with private entrepreneurs, credit rating has a weaker effect on the probability of successful funding among salary earners. However, after examining the default rate, the results show that the default rate of private entrepreneurs is significantly higher than that of salary earners. This indicates that the discrimination of P2P investors is not based on some rational economic roots and is a kind of inefficient tasted-based discrimination. | Journal of Applied Finance Banking vol. 9 no. 6 2019 249-278 ISSN 1792-6580 print version 1792-6599 online Scientific Press International Limited Occupational Identity Discrimination in Peer-to-Peer Lending Xiangbo Cui1 Abstract Using data collected from a leading P2P platform in China this paper empirically tests the discrimination of investors on the occupational identity of borrowers in online lending. I find that P2P investors discriminate against borrowers who are salary earners in terms of occupational identity while preferring borrowers who are private entrepreneurs. Moreover this kind of discrimination can be found in borrowers both with high credit ratings and low credit ratings. The findings also imply that the occupational identity of borrowers plays a role of moderating the relationship between the credit rating and the probability of successful funding. Compared with private entrepreneurs credit rating has a weaker effect on the probability of successful funding among salary earners. However after examining the default rate the results show that the default rate of private entrepreneurs is significantly higher than that of salary earners. This indicates that the discrimination of P2P investors is not based on some rational economic roots and is a kind of inefficient tasted-based discrimination. JEL classification numbers H 74 J 71 Keywords occupational identity peer-to-peer lending probability of successful funding borrowing cost discrimination 1 Tsinghua University PBC School of Finance 43 Chengfu Road Beijing 100083 China Article Info Received June 1 2019. Revised August 14 2019. Published online November 1 2019. 250 Xiangbo Cui 1. Introduction Social discrimination refers to the unfair or unequal treatment of some people in light of their membership of a particular group. There are many causes of social discrimination but the fundamental cause is to offer unfair and exclusive differentiated treatment to certain vulnerable groups out of identity .

• Ngân hàng - Tín dụng
• Occupational identity
• Peer to peer lending
• Probability of successful funding
• Borrowing cost
• Tasted based discrimination
• occupational communities
• organizational control
• Organizational identity
• Attention and control
• motivational orientations
• informal control
• Psychosocial development during adolescence
• Sychosocial problems
• Identity development
• Romantic relationships
• Occupational achievement