The role of appearance attractiveness and loan amount in peer-to-peer lending: Evidence from event-related potentials

In contrast to traditional lending, in peer-to-peer lending, lenders must evaluate the risk of the loan application themselves with limited objective information and professional knowledge. Therefore, information which can be easily obtained may largely influence lenders’ loan decisions, making lenders’ decisions more subjective. Since appearance attractiveness is one of the most important personal characteristics, particularly for females, the study of Jin et al. (2019) is designed to investigate whether and how potential borrowers’ appearance attractiveness influences investors’ decisions in online P2P lending by using event-related potentials. Results of this paper showed that at the behavioral level, the lending decision for attractive borrowers is associated with shorter reaction times than that for unattractive borrowers. In contrast, at the brain level, a large loan amount elicited a larger error-related negative amplitude than a small loan amount for unattractive borrowers, which was not the case for attractive borrowers. This finding could be explained as the borrowers’ appearance attractiveness modulating the lenders’ risk perceptions in P2P lending because lenders are more tolerant when attractive borrowers default and because attractive females may convey more trustworthy impressions according to the theory of perceived risk.

18 thoughts on “The role of appearance attractiveness and loan amount in peer-to-peer lending: Evidence from event-related potentials”

  1. Needed to draft you a little note to be able to give thanks once again about the awesome secrets you’ve discussed above. It has been really pretty open-handed of you to offer extensively all that most people could possibly have advertised for an e book to generate some profit for themselves, even more so seeing that you might have tried it in case you considered necessary. The techniques also worked to be the great way to realize that other individuals have similar desire the same as my personal own to know much more when it comes to this matter. I believe there are numerous more enjoyable instances ahead for many who read your site.

  2. Thank you so much for giving everyone remarkably memorable possiblity to read critical reviews from this website. It is often so lovely and also packed with a good time for me personally and my office fellow workers to search your blog at minimum thrice weekly to study the newest guidance you have. And of course, I’m just certainly pleased for the magnificent concepts served by you. Some 2 tips on this page are truly the simplest we’ve had.

  3. I and my guys were found to be checking out the nice ideas from your web blog while at once came up with a terrible feeling I never thanked the web blog owner for those techniques. All of the women came glad to learn all of them and have in effect certainly been using those things. Appreciation for actually being well accommodating and then for using this sort of high-quality themes millions of individuals are really desirous to be aware of. My very own sincere regret for not expressing gratitude to sooner.

  4. Thanks for all your efforts on this website. My mom take interest in getting into investigations and it is simple to grasp why. All of us hear all about the dynamic means you create functional tips and tricks by means of this web site and as well strongly encourage response from other ones on the concept plus our favorite child is really studying a lot. Take pleasure in the rest of the year. You are always carrying out a dazzling job.

  5. I needed to post you the bit of observation to finally say thanks yet again for your awesome principles you’ve shown at this time. It’s so unbelievably generous of people like you to supply unreservedly precisely what many people would’ve made available for an ebook in making some dough for their own end, most importantly since you could have tried it if you ever desired. Those tips additionally acted to be the good way to fully grasp that many people have a similar keenness just like my personal own to know lots more when it comes to this issue. I’m sure there are several more fun occasions ahead for folks who looked over your blog post.

Leave a Reply

Your email address will not be published.