Social Lending and its Risks

D 2016

Social Lending and its Risks

SPONEROVÁ, Martina a Miroslav SPONER

Základní údaje

Originální název

Social Lending and its Risks

Autoři

SPONEROVÁ, Martina a Miroslav SPONER

Vydání

Brno, 19th International Conference Enterprise and Competitive Environment 2016, ECE 2016, od s. 330-337, 8 s. 2016

Nakladatel

Mendel University in Brno

Další údaje

Jazyk

angličtina

Typ výsledku

Stať ve sborníku

Obor

50200 5.2 Economics and Business

Stát vydavatele

Česká republika

Utajení

není předmětem státního či obchodního tajemství

Forma vydání

elektronická verze "online"

Odkazy

Procedia - Social and Behavioral Sciences

Označené pro přenos do RIV

Ano

Kód RIV

RIV/00216224:14560/16:00091155

Organizační jednotka

Ekonomicko-správní fakulta

ISSN

DOI

https://doi.org/10.1016/j.sbspro.2016.05.506

UT WoS

000386948700039

Klíčová slova anglicky

peer-to-peer financing; peer-to-peer lending platforms; risk; corporate entities; risk assessment

Změněno: 28. 4. 2017 13:43, Mgr. Kateřina Oleksíková, Ph.D.

Anotace

V originále

Czech companies discover alternative non-banking financing of their business. Social lending known as peer to peer (P2P) financing has started to appear on the Czech market. P2P lending is a new platform of financial transactions that bypasses traditional intermediaries by directly connecting borrower and lenders. But there is an information asymmetry between lenders and borrowers to which online P2P lending platforms have to face. As many loans are not secured by collateral, the assessment of the borrower´s creditworthiness is very important. The aim of this article is to define risks of investments to P2P loans and propose the elimination of these risks. We went through studies focused on default of corporate entities which were done in different countries and selected some of them. We have chosen these studies because their research is focused not only on financial indicators assessment but also on non-financial indicators assessment and use econometric models to measure probability of default. These studies also confirmed well known basic relations which should be taken into consideration by lenders - higher profitability, higher liquidity and higher volume of assets means lower risk of default, while higher indebtedness and higher leverage means higher risk of default. Czech companies discover alternative non-banking financing of their business. Social lending known as peer to peer (P2P) financing has started to appear on the Czech market. P2P lending is a new platform of financial transactions that bypasses traditional intermediaries by directly connecting borrower and lenders. But there is an information asymmetry between lenders and borrowers to which online P2P lending platforms have to face. As many loans are not secured by collateral, the assessment of the borrower´s creditworthiness is very important. The aim of this article is to define risks of investments to P2P loans and propose the elimination of these risks. We went through studies focused on default of corporate entities which were done in different countries and selected some of them. We have chosen these studies because their research is focused not only on financial indicators assessment but also on non-financial indicators assessment and use econometric models to measure probability of default. These studies also confirmed well known basic relations which should be taken into consideration by lenders - higher profitability, higher liquidity and higher volume of assets means lower risk of default, while higher indebtedness and higher leverage means higher risk of default. Czech companies discover alternative non-banking financing of their business. Social lending known as peer to peer (P2P) financing has started to appear on the Czech market. P2P lending is a new platform of financial transactions that bypasses traditional intermediaries by directly connecting borrower and lenders. But there is an information asymmetry between lenders and borrowers to which online P2P lending platforms have to face. As many loans are not secured by collateral, the assessment of the borrower´s creditworthiness is very important. The aim of this article is to define risks of investments to P2P loans and propose the elimination of these risks. We went through studies focused on default of corporate entities which were done in different countries and selected some of them. We have chosen these studies because their research is focused not only on financial indicators assessment but also on non-financial indicators assessment and use econometric models to measure probability of default. These studies also confirmed well known basic relations which should be taken into consideration by lenders - higher profitability, higher liquidity and higher volume of assets means lower risk of default, while higher indebtedness and higher leverage means higher risk of default.

Návaznosti

MUNI/A/1025/2015, interní kód MU

Název: Hrozby a výzvy prostředí přetrvávajících nízkých úrokových sazeb pro vývoj a stabilitu finančního systému (Akronym: FinStabilita)

Investor: Masarykova univerzita, Hrozby a výzvy prostředí přetrvávajících nízkých úrokových sazeb pro vývoj a stabilitu finančního systému, DO R. 2020_Kategorie A - Specifický výzkum - Studentské výzkumné projekty

Citovat

SPONEROVÁ, Martina a Miroslav SPONER. Social Lending and its Risks. Online. In Svatopluk Kapounek, Veronika Krůtilová. 19th International Conference Enterprise and Competitive Environment 2016, ECE 2016. Brno: Mendel University in Brno, 2016, s. 330-337. ISSN 1877-0428. Dostupné z: https://doi.org/10.1016/j.sbspro.2016.05.506.

@inproceedings{1356534,
   author = {Sponerová, Martina and Sponer, Miroslav},
   address = {Brno},
   booktitle = {19th International Conference Enterprise and Competitive Environment 2016, ECE 2016},
   doi = {https://doi.org/10.1016/j.sbspro.2016.05.506},
   editor = {Svatopluk Kapounek, Veronika Krůtilová},
   keywords = {peer-to-peer financing; peer-to-peer lending platforms; risk; corporate entities; risk assessment},
   howpublished = {elektronická verze "online"},
   language = {eng},
   location = {Brno},
   pages = {330-337},
   publisher = {Mendel University in Brno},
   title = {Social Lending and its Risks},
   url = {http://www.sciencedirect.com/science/journal/18770428/220/supp/C)},
   year = {2016}
}

TY  - CONF
ID  - 1356534
AU  - Sponerová, Martina - Sponer, Miroslav
PY  - 2016
TI  - Social Lending and its Risks
PB  - Mendel University in Brno
CY  - Brno
KW  - peer-to-peer financing
KW  - peer-to-peer lending platforms
KW  - risk
KW  - corporate entities
KW  - risk assessment
UR  - http://www.sciencedirect.com/science/journal/18770428/220/supp/C)
L2  - http://www.sciencedirect.com/science/journal/18770428/220/supp/C)
N2  - Czech companies discover alternative non-banking financing of their business. Social lending known as peer to peer (P2P) financing has started to appear on the Czech market. P2P lending is a new platform of financial transactions that bypasses traditional intermediaries by directly connecting borrower and lenders. But there is an information asymmetry between lenders and borrowers to which online P2P lending platforms have to face. As many loans are not secured by collateral, the assessment of the borrower´s creditworthiness is very important. The aim of this article is to define risks of investments to P2P loans and propose the elimination of these risks. We went through studies focused on default of corporate entities which were done in different countries and selected some of them. We have chosen these studies because their research is focused not only on financial indicators assessment but also on non-financial indicators assessment and use econometric models to measure probability of default. These studies also confirmed well known basic relations which should be taken into consideration by lenders - higher profitability, higher liquidity and higher volume of assets means lower risk of default, while higher indebtedness and higher leverage means higher risk of default. Czech companies discover alternative non-banking financing of their business. Social lending known as peer to peer (P2P) financing has started to appear on the Czech market. P2P lending is a new platform of financial transactions that bypasses traditional intermediaries by directly connecting borrower and lenders. But there is an information asymmetry between lenders and borrowers to which online P2P lending platforms have to face. As many loans are not secured by collateral, the assessment of the borrower´s creditworthiness is very important. The aim of this article is to define risks of investments to P2P loans and propose the elimination of these risks. We went through studies focused on default of corporate entities which were done in different countries and selected some of them. We have chosen these studies because their research is focused not only on financial indicators assessment but also on non-financial indicators assessment and use econometric models to measure probability of default. These studies also confirmed well known basic relations which should be taken into consideration by lenders - higher profitability, higher liquidity and higher volume of assets means lower risk of default, while higher indebtedness and higher leverage means higher risk of default. Czech companies discover alternative non-banking financing of their business. Social lending known as peer to peer (P2P) financing has started to appear on the Czech market. P2P lending is a new platform of financial transactions that bypasses traditional intermediaries by directly connecting borrower and lenders. But there is an information asymmetry between lenders and borrowers to which online P2P lending platforms have to face. As many loans are not secured by collateral, the assessment of the borrower´s creditworthiness is very important. The aim of this article is to define risks of investments to P2P loans and propose the elimination of these risks. We went through studies focused on default of corporate entities which were done in different countries and selected some of them. We have chosen these studies because their research is focused not only on financial indicators assessment but also on non-financial indicators assessment and use econometric models to measure probability of default. These studies also confirmed well known basic relations which should be taken into consideration by lenders - higher profitability, higher liquidity and higher volume of assets means lower risk of default, while higher indebtedness and higher leverage means higher risk of default.
ER  -

SPONEROVÁ, Martina a Miroslav SPONER. Social Lending and its Risks. Online. In Svatopluk Kapounek, Veronika Krůtilová. \textit{19th International Conference Enterprise and Competitive Environment 2016, ECE 2016}. Brno: Mendel University in Brno, 2016, s.~330-337. ISSN~1877-0428. Dostupné z: https://doi.org/10.1016/j.sbspro.2016.05.506.

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