Geographical Proximity and Enhanced Attention in P2B Crowdlending Strategies
Gresse, Carole; Marin, Hugo (2022), Geographical Proximity and Enhanced Attention in P2B Crowdlending Strategies, Behavioural Finance Working Group 15th Annual Conference, 2022-06, Londres, Royaume-Uni
Type
Communication / ConférenceDate
2022Titre du colloque
Behavioural Finance Working Group 15th Annual ConferenceDate du colloque
2022-06Ville du colloque
LondresPays du colloque
Royaume-UniMétadonnées
Afficher la notice complèteAuteur(s)
Gresse, CaroleDauphine Recherches en Management [DRM]
Marin, Hugo
Dauphine Recherches en Management [DRM]
Résumé (EN)
Using 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.Mots-clés
peer-to-business crowdlending; crowdfunding; behavioral finance; loan performance; price discovery processPublications associées
Affichage des éléments liés par titre et auteur.
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Gresse, Carole; Marin, Hugo (2022) Communication / Conférence
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Gresse, Carole; Marin, Hugo (2022) Communication / Conférence
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Gresse, Carole; Marin, Hugo (2021) Communication / Conférence
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Gresse, Carole; Marin, Hugo (2021) Communication / Conférence
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Gresse, Carole; Marin, Hugo (2021) Document de travail / Working paper