Empirical Study of the Financing Efficiency Determinants of Online Lending Platforms: Based on Renrendai Online Lending Platforms

Abstract

This study took Renrendai as an example, hypothesizing and confirming influencing factors of the financing efficiency of online lending platforms. Having adopted regression models and variance analysis, the results show that the number of borrowers, the amount of borrowing per capita, the average lending periods, the number of investors, and the amount of investment per capita will have an impact on financing efficiency of Renrendai, the expected rate of return and the scale of risk reserve fund are negatively correlated with Renrendai’s financing efficiency, and the effect of the credit level on the financing efficiency of the online lending platform is obviously greater than the effect brought by GDP growth. This study also finds that different regions where the lenders are located have no influence on the financing efficiency of online lending platforms. Finally some recommendations are provided such as platforms should enhance risk management and network detection system, collaborating with other firms to share information and the government should also set up a special supervision system.