Borrower’s default and self-disclosure of social media information in P2P lending

Ruyi Ge, Juan Feng, Bin Gu

Research output: Contribution to journalArticlepeer-review

14 Scopus citations


Background: We examine the signaling effect of borrowers’ social media behavior, especially self-disclosure behavior, on the default probability of money borrowers on a peer-to-peer (P2P) lending site. Method: We use a unique dataset that combines loan data from a large P2P lending site with the borrower’s social media presence data from a popular social media site. Results: Through a natural experiment enabled by an instrument variable, we identify two forms of social media information that act as signals of borrowers’ creditworthiness: (1) borrowers’ choice to self-disclose their social media account to the P2P lending site, and (2) borrowers’ social media behavior, such as their social network scope and social media engagement. Conclusion: This study offers new insights for screening borrowers in P2P lending and a novel usage of social media information.

Original languageEnglish (US)
Article number30
JournalFinancial Innovation
Issue number1
StatePublished - Dec 1 2016


  • Default
  • Difference-in-difference
  • P2P lending
  • Self-disclosure
  • Social media

ASJC Scopus subject areas

  • Finance
  • Management of Technology and Innovation


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