AFA Ph.D. Student Poster Session at the 2020 Annual Meeting(21)

I study borrower misreporting in peer-to-peer loans for credit card debt repayment and consolidation. I identify potential misreporting based on three indicators: consistency of loan amount with outstanding credit balance, roundness of reported income, and roundness of chosen loan amount. A Misreporting Index constructed from these indicators has significant predictive power over the likelihood of default, and the additional default risk is not compensated by higher interest. Misreporting is more prevalent in areas with lower social capital, implying weaker social norms, and among borrowers whose professions are considered less honest, while borrowers with higher genuine income uncertainty also misreport more.

原文链接：

https://editorialexpress.com/cgi-bin/conference/download.cgi?db_name=AFAPS2020&paper_id=235

Based on 2,000 ICOs from 105 countries between 2015 and 2018, we discuss the international development of ICOs and examine the impact of institutional strength on the number of ICOs per country, their probability of success and return volatility. We provide evidence that institutional strength has a positive and significant effect on the number of ICOs, their probability of success and their volatility. Furthermore, we show that the positive relationship between institutional background and investors’ decision to contribute to an ICO project is moderated by cultural dimensions of uncertainty avoidance and collectivism. We also observe that this relationship is particularly relevant for countries with no or light regulations concerning ICOs, which indicates that institutions, to some extent, substitute for the regulatory void. Our study therefore provides evidence that strong institutions support the development of ICOs, infer trustworthiness to investors and, thereby, reduce the return volatility associated with ICOs.

原文链接：

https://editorialexpress.com/cgi-bin/conference/download.cgi?db_name=AFAPS2020&paper_id=240