Preprint
The Influence of Peer Effects on College Students' Online Consumer Credit Behavior
Social Science Research Network (SSRN) , Vol.4 September 2024
Elsevier
2024
Abstract
This study investigates the presence of a bandwagon effect in college students' online consumer credit behavior, utilizing survey data from seven universities in Shanghai, China. Through the application of a quasi-natural experimental approach, predicated on the random assignment of dormitories, the research examines how the average living expenses of roommates affect both the likelihood and magnitude of online consumer credit use among college students. The findings demonstrate that a significant bandwagon effect persists, even after controlling for potential biases arising from information diffusion, herd mentality, and consumption substitution. Furthermore, the heterogeneity analysis reveals that this bandwagon effect is not uniform but varies according to student demographics and economic backgrounds. Specifically, it is more pronounced among male and senior students, who typically exhibit higher consumption demands. Additionally, students from urban areas or those with higher family incomes display a stronger sensitivity to their roommates' living expenses in their online consumer credit behavior. These results underscore the intricate dynamics of peer influence on financial decision-making among college students, thereby emphasizing the imperative for targeted financial education and the provision of customized financial services to foster responsible credit use.
Details
- Title
- The Influence of Peer Effects on College Students' Online Consumer Credit Behavior
- Authors
- Wei Huang - Shanghai Lixin University of Accounting and FinanceYang Wang - Shanghai University of Political Science and LawSajid Anwar - University of the Sunshine Coast, Queensland, School of Business and Creative Industries
- Publication details
- Social Science Research Network (SSRN) , Vol.4 September 2024
- Publisher
- Elsevier
- Date published
- 2024
- DOI
- 10.2139/ssrn.4946931
- ISSN
- 1556-5068
- Data Availability
- The data used in this study are available upon reasonable request form the authors.
- Grant note
- National Social Science Fund of China (Project No. 22BJL026) and Shanghai Philosophy and Social Science Planning Youth Project (2021EJB009) supported by Shanghai Planning Office of Philosophy and Social Science.
- Organisation Unit
- School of Business and Creative Industries; Indigenous and Transcultural Research Centre
- Language
- English
- Record Identifier
- 991087897102621
- Output Type
- Preprint
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