Institutions and retail investors in the Peer-to-peer lending market Markus
Master thesis
Permanent lenke
https://hdl.handle.net/11250/3037116Utgivelsesdato
2022Metadata
Vis full innførselSamlinger
- Master of Science [1622]
Sammendrag
P2P lending is a market that has emerged from the FinTech industry, which aims to
provide funding to those who cannot get funding from traditional banks. The market
was intended for retail investors, but as the market has matured, larger financial
institutions have begun to take an increasing part in the market. It is speculated that
investors will outperform retail investors due to their capital powers and investment
strategies, as they compete in the same market for a fixed amount of assets. This
paper aims to deepen our understanding and find supportive documentation for
these speculations. We have defined our research question:
“Will institutionalization of the P2P lending market have a negative effect on the
retail investor?”
To answer this question, we have primarily used a quantitative approach with
supportive secondary research papers to confirm our findings. The quantitative
approach included several regression models and an evaluation of descriptive
statistics from the dataset retrieved from Prosper Marketplace. Our results were
supportive of our research question and prove that institutional investors
outperform retail investors in the market of P2P lending.
Beskrivelse
Masteroppgave(MSc) in Master of Science in Business, Finance - Handelshøyskolen BI, 2022