Publication Type

Journal Article

Version

acceptedVersion

Publication Date

1-2024

Abstract

This paper examines whether and how individual risk-taking behavior affects real estate financing through shadow banks. Using the loan data from an online platform in China, we show that riskier households tend to employ online loans to meet the increasing down-payment in their home purchase. Individual investors are likely to fund riskier real estate loans with higher expected returns. Real estate loans experience higher ex-post default rates than other types of loans. The effect is more pronounced during the period of credit constraints.

Keywords

Online lending, risk taking, real estate loans, house purchase restrictions

Discipline

Asian Studies | Finance and Financial Management | Real Estate

Publication

Journal of Real Estate Finance and Economics

Volume

68

Issue

1

First Page

1

Last Page

27

ISSN

0895-5638

Identifier

10.1007/s11146-022-09936-7

Publisher

Springer

Copyright Owner and License

Authors

Additional URL

https://doi.org/10.1007/s11146-022-09936-7

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