Mismatch between investor preferences and financial services/products

Ekonomska Istraživanja

Geran Tian¹  Weixing Wu¹ 

[1] School of Banking and Finance, University of International Business and Economics;

关键词: peer-to-peer lending (p.2.p.);    investor behaviour;    financial service;    financial participation;   

DOI  :  10.1080/1331677X.2021.2013278

来源: DOAJ

【 摘 要 】

In a major peer-to-peer (P.2.P.) lending market in China, we observe that some investors choose not to use auto-investment service and stick to time-consuming manual investment. By analysing over 200 million pieces of data, we find that the do-it-yourself (D.I.Y.) investors pursue 1.20% higher annual return and five to seven months shorter maturity than the auto-investment service can offer. Indeed, D.I.Y. investors obtained 1.25% higher return than auto-investors, but they also took excessive risk. These results are confirmed by dual investors sample, who switch between D.I.Y. and auto-investment services. We also show that the results are not due to algorithm priority. We suggest that financial institutions provide more personalized services and products to accommodate investors with various target returns and risk attitudes.

【 授权许可】

Unknown