Journal of Information Technology Services (한국IT서비스학회지)

Korea Society of IT Services (한국IT서비스학회)
권호 표지
DOI QR코드

DOI QR Code

The Influence of Social Interaction on Decision Making : Evidence from Moneyauction and Popfunding in Korea

사회적 교감이 의사결정에 미치는 영향에 대한 연구 : 머니옥션과 팝펀딩의 사례를 중심으로

  • 김동우 (연세대학교 기술경영학협동과정) ;
  • 김현식 (연세대학교 기술경영학협동과정) ;
  • 이성호 (연세대학교 기술경영학협동과정) ;
  • 박태준 (연세대학교 기술경영학협동과정) ;
  • 이인성 (연세대학교 기술경영학협동과정)
  • Received : 2015.04.24
  • Accepted : 2015.06.20
  • Published : 2015.09.30
Download PDF
⟨ Previous Next ⟩

Abstract

How does social interaction among investors affect decision-making in the online social lending platform? And what is the reason? In this study, in order to obtain the answer, we carried out case study research of Moneyauction and Popfunding, which are domestic online social lending platforms. We conducted interviews with managements of both social lending platforms and investors and analyzed statistical data including investment records, social interaction history between investors and lenders from both platforms. In addition, researchers performed direct participation and observation through the platforms as real investment members. As a result, we revealed that social interaction among investors has a material impact on the investment decision-making. Also we found that investors build trust by socially interacting with each other and this trust building leads to the investment decision making. Our findings confirm that social lending investors's decision-making process comply with the social embeddedness theory and imply that loan applicants must do their best efforts to display sincerity and truthfulness through their posting.

Keywords

References

  1. Choi, E.H., "Empirical Study about the Repayment Success Factors in P2P Lending", Master's Degree Thesis, KAIST, 2011. (최은호, "P2P 대출의 상환 성공요인 분석 연구", 석사학위논문, 한국과학기술원, 2011.)
  2. Dieckmann, R., B. Speyer, M. Ebling, and Walter, N., "Microfinance : An Emergin Investment Opportunity : Uniting Social Investment and Financial Returns", Deutsche Bank Research. 2007.
  3. Duarte, J., S. Siegel, and L. Young, "Trust and Credit : The Role of Appearance in Peerto-Peer Lending", Review of Financial Studies, Vol.25, No.8, 2012, 2455-2484. https://doi.org/10.1093/rfs/hhs071
  4. Everett, C.R., "Group Membership, Relationship Banking and Loan Default Risk : the Case of Online Social Lending", Relationship Banking and Loan Default Risk : The Case of Online Social Lending, 2010.
  5. Freedman, S. and G.Z. Jin, "Do Social Networks Solve Information Problems for Peer-to-Peer Lending? Evidence from Prosper.com", Working Paper, University of Indiana, 2008.
  6. Friedkin, N.E., "Norm Formation in Social Influence Networks", Social Networks, Vol.23, No.3, 2001, 167-189. https://doi.org/10.1016/S0378-8733(01)00036-3
  7. Glaser, G.B. and A.L. Strauss, "Awareness of Dying", Chicago : Aldine Publishing Co., 1965.
  8. Granovetter, M., "Economic Action and Social Structure : The Problem of Embeddedness", The American Journal of Sociology, Vol.91, No.3, 1985, 481-510. https://doi.org/10.1086/228311
  9. Gulati, R., "Social Structure and Alliance Formation Patterns : A Longitudinal Analysis", Administrative Science Quarterly, Vol.40, No.4, 1995, 619-652. https://doi.org/10.2307/2393756
  10. Herrero-Lopez, S., "Social Interactions in P2P Lending", Proceedings of the 3rd Workshop on Social Network Mining and Analysis, ACM, 2009.
  11. Herzenstein, M., R.L. Andrews, U.M. Dholakia, and E. Lyandres, "The Democratization of Personal Consumer Loans? Determinants of Success in Online Peer-to-Peer Lending Communities", Working Paper, University of Delaware, 2008.
  12. Herzenstein, M., U.M. Dholakia, and R.L. Andrews, "Strategic Herding Behavior in Peerto-Peer Loan Auctions", Journal of Interactive Marketing, Vol.25, No.1, 2011, 27-36. https://doi.org/10.1016/j.intmar.2010.07.001
  13. Ho, J.S., "Empirical Study about the Effects of Social Capital Formation and Utilization on Online P2P Lending", Master's Degree Thesis, KAIST, 2010. (호재성, "사회적 자본의 형성과 활용이 온라인 개인간 대출 거래에 미치는 영향에 대한 실증연구", 석사학위논문, 한국과학기술원, 2010.)
  14. Iyer, R., A.I. Khwaja, E.F.P. Luttmer, and K. Shue, "Screening in New Credit Markets : Can Individual Lenders Infer Borrower Credit worthiness in Peer-to-Peer Lending?", Working paper, National Bureau of Economic Research, 2009.
  15. Jeong K.J. and E.K. Lee, "Empirical Study about the Impact of Information Renewal on Investment Decision-Making in Online P2P Lending", Business Management Research, Vol.4, No.1, 2011, 49-65. (정광재, 이은경, "온라인 개인간 대출 거래에서 정보 갱신이 투자 결정에 미치는 영향에 대한 실증적 연구", 여성과 경영, 제4권, 제1호, 2011, 49-65.)
  16. Kim, H.K., K.W. Park, B.T. Lee, and E.H. Choi, "A Study on Deterninants of Loan Rapayment in Peer-to-Peer Lending", Asian Review of Financial Research, Vol.26, No.3, 2013, 381-415 (김학건, 박광우, 이병태, 최은호, "온라인 개인간(P2P) 대출의 상황 성공요요인에 관한 연구." 재무연구, 제26권, 제3호, 2013, 381-415.)
  17. Krumme, K.A. and S. Herrero, "Lending Behavior and Community Structure in an Online Peerto-Peer Economic Network", IEEE, Vol.4, 2009, 613-618.
  18. Lazarsfeld, P.F. and R.K. Merton, "Friendship as a Social Process : A Substantive and Methodological Analysis", Freedom and Control in Modern Society, Vol.18, No.1, 1954, 18-66.
  19. Lee, E. and B. Lee, "Herding Behavior in Online P2P Lending : An Empirical Investigation", Electronic Commerce Research and Applications, Vol.11, No.5, 2012, 495-503. https://doi.org/10.1016/j.elerap.2012.02.001
  20. Lin, M., N.R. Prabhala, and S. Viswanathan, "Judging Borrowers by the Company They Keep : Social Networks and Adverse Selection in Online Peer-to-Peer Lending", SSRN eLibrary, 2009.
  21. McPherson, M., L. Smith-Lovin, and J.M. Cook, "Birds of a Feather : Homophily in Social Networks", Annual Review of Sociology, 2001, 415-444.
  22. Pao, A.S.Y. and R. Bhattacharrya, "The Effects of Social Interactions on P2P Lending", Working paper, MAS final project, 2009.
  23. Pope, D.G. and J.R. Syndor, "What's in a Picture? Evidence of Discrimination from Prosper. com", Journal of Human Resources, Vol.46, No.1, 2011, 53-92.
  24. Potzsch, S. and R. Bohme, "The Role of Soft Information in Trust Building : Evidence from Online Social Lending", Trust and Trustworthy Computing, Springer Berlin Heidelberg, 2010, 318-395.
  25. Puro, L., J.E. Teich, H. Wallenius, and J. Wallenius, "Borrower Decision Aid for People-to-People Lending", Decision Support Systems, Vol.49, No.1, 2010, 52-60. https://doi.org/10.1016/j.dss.2009.12.009
  26. Ravina, E., "Beauty, Personal Characteristics and Trust in Credit Markets", Personal Characteristics and Trust in Credit Markets, 2007.
  27. Ryan, L., R. Sales, M. Tilki, and B. Siara, "Social Networks, Social Support and Social Capital : The Experiences of Recent Polish Migrants in London", Sociology, Vol.42 No.4, 2008, 672-690. https://doi.org/10.1177/0038038508091622
  28. Schlenker, B.R., B. Helm, and J.T. Tedeschi, "The Effects of Personality and Situational Variables on Behavioral Trust", Journal of Personality and Social Psychology, Vol.25. No.3, 1973, 419-427. https://doi.org/10.1037/h0034088
  29. Silverman, D., Doing Qualitative Research : A Practical Handbook, Sage, 2013.
  30. Sviokla, J., "Breakthrough Ideas : Forget Citibank? Borrow form Bob", Harvard Business Review, 2009.
  31. Wang, H. and M. Greiner, "Herding in Multiwinner Auctions", ICIS, 2010, 235.
  32. Yin, R.K., Case Study Research : Design and Methods, Sage, 2009.