Day is the Morning? The Effects of Diurnal Variations and Interaction Modes in Online P2P Lending

54 Pages Posted: 11 Nov 2020

See all articles by Yi Wu

Yi Wu

Tianjin University - College of Management and Economics

Yi Shen

Soochow University - Dongwu Business School

Zhijie Lin

Tsinghua University - School of Economics and Management

Yuelei Li

Tianjin University - College of Management and Economics

Date Written: September 8, 2020

Abstract

Online peer-to-peer (P2P) lending has empowered individual lenders to make investment decisions anytime and anywhere. However, there is scant research effort on exploring the time of day effect and further time-ITs relationship in the crowdfunding literature. Drawing on ego depletion theory, this study proposes a novel theoretical framework of diurnal variations on lenders’ investment decisions. We collect and analyze the data from a large online P2P lending platform in China. Based on multiple estimation models and identification strategies, we find robust evidence that lenders bid the largest amount of money in the morning, the moderate amount in the afternoon, and the smallest amount in the evening. Moreover, they bid most quickly in the afternoon, moderately in the morning, and most slowly in the evening. Furthermore, the diurnal variations in terms of bidding amount and bidding speed become more prominent in touch-based interaction, compared with mouse-based interaction. Our empirical findings contribute to extant investment decision making research in the crowdfunding literature and the time-ITs relationship discourse in the IS research, and offer critical managerial implications to marketing strategies of loan listings for platform managers.

Keywords: bidding amount, bidding speed, time of day, ego depletion theory, interaction modes

Suggested Citation

Wu, Yi and Shen, Yi and Lin, Zhijie and Li, Yuelei, Day is the Morning? The Effects of Diurnal Variations and Interaction Modes in Online P2P Lending (September 8, 2020). Available at SSRN: https://ssrn.com/abstract=3689086 or http://dx.doi.org/10.2139/ssrn.3689086

Yi Wu (Contact Author)

Tianjin University - College of Management and Economics ( email )

NO.92 Weijin Road
Nankai District
Tianjin, 300072
China

Yi Shen

Soochow University - Dongwu Business School ( email )

No. 1 Shizi Street
Suzhou, Jiangsu 215006
China

Zhijie Lin

Tsinghua University - School of Economics and Management ( email )

Haidian District
Beijing, Beijing 100084
China

Yuelei Li

Tianjin University - College of Management and Economics ( email )

NO.92 Weijin Road
Nankai District
Tianjin, 300072
China

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