Research Repository

Message Framing in P2P Lending Relationships

Huang, Jin and Sena, Vania and Li, Jun and Ozdemir, Sena (2020) 'Message Framing in P2P Lending Relationships.' Journal of Business Research. ISSN 0148-2963

[img] Text
P2P lending final_June 2020 accepted version.pdf - Accepted Version
Restricted to Repository staff only until 24 January 2022.
Available under License Creative Commons Attribution Non-commercial No Derivatives.

Download (279kB)


This paper investigates whether language and associated message framing (low-cost signal) can provide a solution to the risks generated by asymmetric information in P2P lending, drawing on the signalling and message-framing theories. First, it examines the extent to which message framing is associated with funding outcomes in the context of P2P lending; second, it investigates whether positive message framing reinforces the positive impact of credit ratings (high-cost signal) on funding outcomes. Our analysis is conducted on a dataset of 33028 listings of potential borrowers from a Chinese P2P lending platform using the Heckman selection models. We find that the use of positively framed messages is positively associated with positive funding outcomes and enhances the positive impact of the credit ratings on funding outcomes. Our results contribute to the literature on the effectiveness of low-cost signals in of Internet-based interactions while highlighting complementarities between different types of signals in P2P lending.

Item Type: Article
Uncontrolled Keywords: Signalling Theory, Message Framing, P2P Lending
Divisions: Faculty of Social Sciences > Essex Business School
Depositing User: Elements
Date Deposited: 18 Aug 2020 13:17
Last Modified: 08 Mar 2021 13:20

Actions (login required)

View Item View Item