The DOI matches its Crossref record; 12 of the 12 references it cites were found in a registry or an index.
Judging Borrowers by the Company They Keep: Friendship Networks and Information Asymmetry in Online Peer-to-Peer Lending
Open accessAbstract
We study the online market for peer-to-peer (P2P) lending, in which individuals bid on unsecured microloans sought by other individual borrowers. Using a large sample of consummated and failed listings from the largest online P2P lending marketplace, Prosper.com, we find that the online friendships of borrowers act as signals of credit quality. Friendships increase the probability of successful funding, lower interest rates on funded loans, and are associated with lower ex post default rates. The economic effects of friendships show a striking gradation based on the roles and identities of the friends. We discuss the implications of our findings for the disintermediation of financial markets and the design of decentralized electronic markets. This paper was accepted by Sandra Slaughter, information systems.
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Cites
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Giving content to investor sentiment: The role of media in the stock market
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Cited by
Gomber, P., Kauffman, R. J., Parker, C., & Weber, B. W. (2018) · Journal of Management Information Systems · doi:10.1080/07421222.2018.1440766 · Cited by 2,109
Benchmarking state-of-the-art classification algorithms for credit scoring: an update of research
Lessmann, S., Baesens, B., Seow, H.-V., & Thomas, L. C. (2015) · European Journal of Operational Research · doi:10.1016/j.ejor.2015.05.030 · Cited by 1,284
FinTech and banking: What do we know?
Thakor, A. V. (2020) · Journal of Financial Intermediation · doi:10.1016/j.jfi.2019.100833 · Cited by 1,378
On the Rise of FinTechs: Credit Scoring Using Digital Footprints
Berg, T., Burg, V., Gombović, A., & Puri, M. (2020) · The Review of Financial Studies · doi:10.1093/rfs/hhz099 · Cited by 919
Rational Herding in Microloan Markets
Zhang, J., & Liu, P. (2012) · Management Science · doi:10.1287/mnsc.1110.1459 · Cited by 853
Metadata
- Authors
- Lin, M., Prabhala, N. R., & Viswanathan, S.
- Venue
- Management Science
- Published
- 2013-01
- Volume
- 59
- Issue
- 1
- Pages
- 17-35
- ISSN
- 0025-1909 (ISSN-L)
- 1526-5501
- OpenAlex
- W3124284538
- Cited by
- 1,299
- References
- 12
- FWCI
- 76.78
- Type
- journal article
- Language
- en
- Open access
- green
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- Lin, M., Prabhala, N. R., & Viswanathan, S. (2013). Judging Borrowers by the Company They Keep: Friendship Networks and Information Asymmetry in Online Peer-to-Peer Lending. Management Science. https://doi.org/10.1287/mnsc.1120.1560
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Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).
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