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Geographical-Proximity Bias in P2B Crowdlending Strategies

dc.contributor.authorGresse, Carole
dc.contributor.authorMarin, Hugo
dc.date.accessioned2021-10-22T10:45:10Z
dc.date.available2021-10-22T10:45:10Z
dc.date.issued2021
dc.identifier.urihttps://basepub.dauphine.psl.eu/handle/123456789/22082
dc.language.isoenen
dc.subjectpeer-to-business crowdlending
dc.subjectcrowdfunding
dc.subjectbehavioral finance
dc.subjectloan performance
dc.subjectprice discovery process
dc.subjectG11,G14,G23,658.1/Gestion financière, capital risque, création de valeur
dc.subject.ddc658.1en
dc.subject.classificationjelG.G1.G11en
dc.subject.classificationjelG.G1.G14en
dc.subject.classificationjelG.G2.G23en
dc.titleGeographical-Proximity Bias in P2B Crowdlending Strategies
dc.typeCommunication / Conférence
dc.description.abstractenUsing data from a peer-to-business crowdlending platform that exploits an auction-driven system to fund corporate loans, we show that non-professional investors are subject to a geographical-proximity bias. They are more likely to win the auctions of borrowers located close to their place of residence notwithstanding that they are not better informed about their creditworthiness. Unexpectedly, this behavioral bias distorts the loan rate discovery processby increasing the cost of funding for borrowers. This adverse effect results from the greaterability of local investors to submit winning bids at an early stage. This ability is gained from their experience in previous auctions of geographically close borrowers. This suggests that the familiarity feeling stemming from geographical closeness strengthens investor attention,and thereby improves lenders’ knowledge about the dynamics of the order flow in local borrowers’ auctions.
dc.subject.ddclabelGestion financière, capital risque, création de valeuren
dc.relation.conftitleSéminaire du groupe de recherche en finance de l'Université Jean Moulin Lyon 3
dc.relation.confdate2021-06
dc.relation.confcityLyon
dc.relation.confcountryFRANCE
dc.relation.forthcomingnonen
dc.description.ssrncandidatenon
dc.description.halcandidateoui
dc.description.readershiprecherche
dc.description.audienceInternational
dc.date.updated2022-06-21T19:56:42Z
dc.subject.classificationjelHALG - Financial Economics::G1 - General Financial Markets::G11 - Portfolio Choice; Investment Decisionsen
dc.subject.classificationjelHALG - Financial Economics::G1 - General Financial Markets::G14 - Information and Market Efficiency; Event Studies; Insider Tradingen
dc.subject.classificationjelHALG - Financial Economics::G2 - Financial Institutions and Services::G23 - Non-bank Financial Institutions; Financial Instruments; Institutional Investorsen
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