Will the negative psychological perceptions of investors reduce platform liquidity? Evidence from China's online loans.

ABSTRACT: Market liquidity can reflect whether financial market conditions are favorable and is the primary concern for investors when making investment decisions. Therefore, investors' psychological perception and confidence in the quality of products (assets) are particularly important. Using 264 of China's online loan platforms from August 2017 to November 2018, we investigate the impact of the negative psychological perceptions of investors on platform liquidity. The empirical results suggest that the negative psychological perceptions of investors reduce platform liquidity and increase platform liquidity risk. Using the Baidu Search Index to measure investor sentiment, we find that the negative psychological perceptions of investors affect platform liquidity by affecting investor sentiment, whi

SUBMITTER: Qin Z 

PROVIDER: S-EPMC10564232 | biostudies-literature | 2023

REPOSITORIES: biostudies-literature