How Does Internet Finance Influence the Interest Rate? Evidence from Chinese Financial Markets
Year: 2018
Type: article
Abstract: It is gradually accepted that the Internet finance has increased the accessibility of financial market, and caused an important impact on the financial market. Considering the quick development of the Internet finance in China, we propose theoretical hypotheses to explain the influencing path of Internet finance on market interest rate. Then by using the data from May 2013 to November 2016, we apply UCINET diagram and vector autoregression model and variance decomposition methods to verify the theoretical hypotheses. The empirical results show the Internet finance lead to the change of market interest rate mainly through reference point effect of P2P interest rate. Although the Internet finance affects the social monetization and exchange rate, this impact cannot be passed to interest rate through the medium variables of social monetization and exchange rate.
DOI: 10.20897/djfm/89590
Authors: Changqing Luo, Mengzhen Li, Pin Peng, Siyuan Fan
Institution: Hunan University of Technology and Business
Language: English
Subfield: Management Information Systems
Domain: Social Sciences
Open Access status: hybrid
OpenAlex ID: W2797239339