A Study on Risk of Internet Finance Based on Industrial Economics

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Description
Under the background of the "new normal" of China's economy and the contraction of traditional financial sector, the development of Internet finance provides new financing channels for SMEs and individual financial needs. But with rapid development of the Internet finance,

Under the background of the "new normal" of China's economy and the contraction of traditional financial sector, the development of Internet finance provides new financing channels for SMEs and individual financial needs. But with rapid development of the Internet finance, the overall risk also appears gradually as well as the platform differentiation appears more evidently. China's Internet financial industry enters the stage of standardization development. In order to effectively prevent and resolve Internet financial risks and create a good internet financial environment, we need to identify the risk factors of Internet financial industry. Through reference carding of the existing literature, this paper proposes a research hypothesis that the industrial economic background is negatively related to the operating risk of the Internet financial platform. After descriptive statistical analysis of the current situation of the Internet financial industry in China, this paper collects 600 P2P net-lending platforms data manually, and uses Probit model to test the research hypothesis. Ceteris paribus, the result show that compared with the platform without industrial economic background, the risk probability of the industrial economic background platform will be reduced by 6.5 percentage points, and there is no regional difference in this result. This paper explains the result from two layers which are the relieving information asymmetry and the platform’s reputation mechanism. The study also finds that in addition to the industrial economic background, the P2P platform's registered capital, operation time, whether the platform funds have the corresponding third-party guarantee and the information disclosure of platform executives will significantly reduce business risk probability of the platforms. The above research conclusions also passed the robust test. Finally, this paper makes a case analysis of the two Internet Financial platforms in Suning Finance and Tuniu Finance, which have different industrial economic background and mode of operation. It also summarizes the risk control system.
Date Created
2018
Agent

A Study of Franchising Models in Express Delivery Services in China

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Description
With regard to business modules in Chinese delivery services companies, there has long been a heated debate on whether franchising or direct management is the better module for Chinese market. But most prior discussion was lightweight, unconvincing and without any

With regard to business modules in Chinese delivery services companies, there has long been a heated debate on whether franchising or direct management is the better module for Chinese market. But most prior discussion was lightweight, unconvincing and without any theoretical framework.

This research examines three major management problems in Chinese delivery services: 1. The reason for choosing franchising module, 2. The relationship between franchising module and implementation of the product, 3. The functions of IT in delivery services. By reviewing theories on enterprise boundary and summarizing the six features of franchising contracts in Chinese delivery business as well as the five properties of delivery products, two contract models are finally set up with five beneficial conclusions which are proved by a very solid empirical data analysis.

The purpose of this research is to either support or weaken the current theories on enterprise boundary as well as to offer meaningful inspirations for the management of express delivery companies in China.
Date Created
2018
Agent

From Preference to Choice: An Empirical Analysis of Consumer Decision Making in

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Description
In this study I investigate the factors that may influence consumer preference and choice in China’s home interior decoration industry. With the fast development of information technology such as the internet in China, it becomes increasingly important to have a

In this study I investigate the factors that may influence consumer preference and choice in China’s home interior decoration industry. With the fast development of information technology such as the internet in China, it becomes increasingly important to have a more precise understanding of consumer preference and choice in home interior decoration decisions so that companies in this industry can provide better services to meet customer needs. Using survey data from a sample of potential customers and a sample of existing customers of a large home interior decoration company, I find that (1) internet has become the mostly used channel by consumers to gather information about home interior decoration, (2) design style is the most influential factor in consumers’ choice of home interior decoration company, and (3) consumers are more likely to choose home interior decoration companies to provide full services when they are between 35 to 45 years old or above 55 years old, when it is the first time for them to purchase a real estate property, and when they are located in the Eastern region of China. Findings of this study can help home interior decoration companies better understand customer needs and preferences, facilitate changes in their marketing and sales strategies, and consequently strengthen their competitive advantage.
Date Created
2015
Agent