Peer-to-peer lending as a substitute to conventional investment products
|Author:||Bc. Tomáš Vysušil|
|Year:||2019 - summer|
|Leaders:|| Mgr. Petr Polák MSc.
|Work type:|| Bachelors
|Awards and prizes:|
|Abstract:||This thesis supplements the investor oriented research on Peer-to-peer(P2P) lending. In
particular, P2P lending is examined as a substitute to conventional investment products.
Due to the shortage of macrodata to analyse the topic, questionaired survey gathered
microdata are used. The data are than used to estimate the effect of a change in annual
rate of return on the distribution of portfolio invesntments across assets. The methods
used in the analysis are the log-odds ratio transformation of the dependent variables
and pooled OLS estimation with heteroskedasticity robust errors due to the results of
Breusch-Pagan test. The results suggest that P2P loans are substitutes to Non-Fixed
income investments rather than to Fixed income assets as it was expected. Further, it
is found that investors in P2P loans undestand this form of investment to be safe as
more risk averse investors are found to have higher fraction of their portfolio alocated in
P2P loans. All the active P2P lending platforms on the Czech market are theoretically
analyzed based on the developed method.