How Individual Investors React to Negative Events in the FinTech Era? Evidence from China’s Peer-to-Peer Lending Market

Inexperienced individual investors are the main players in emerging FinTech industry, and also suffer from frequent negative events markets. With 3,110 467,594 transaction data of China’s peer-to-peer lending market 2015 to 2018, this paper analyzes how different types platform affect decision-making investors. We find that only have a significant reaction moral hazard exposure such as platforms absconding, with relatively ignorance other events. The effect is rapid but short-lived, shows differences among background attributes. By mediation analysis, we public attention can be mediator explain pattern impact absconding on Related risk prevention, regulation, investor education issues discussed further suggestions put forward for both regulators.