LAUSR

Our study explores the factors influencing investors’ behavior in the peer-to-peer (P2P) lending market in China, and the relationships among them from the perspective of investors. The primary component analysis method was used to divide the P2P lending platforms into five categories. Then, a structural equation model was applied to analyze the interrelationship. Our results show that more exceptional operating ability, profitability, and security of the platform help to improve investor’s investment behavior. Operation ability is the most significant influencing factor, which also influences other factors to different degrees. After the analysis of the results, we found that the security degree of P2P lending platforms in China differs, and the risk due to the lack of bank depository for platforms is the most serious. In terms of the background, investors are less interested in the state-owned platforms compared to the bank- or listed-company-owned platforms, although the background strength of the state-owned platforms is more powerful.