SCIENTIA GEOGRAPHICA SINICA ›› 2021, Vol. 41 ›› Issue (5): 747-758.doi: 10.13249/j.cnki.sgs.2021.05.002

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Spatio-temporal Variations of Internet Finance Enterprises’ Survival and Their Influence Factors in China: A Case Study of P2P Lending

Wang Mingfeng1,2,3(), Zhao Yuping1,3   

  1. 1. Center for Modern Chinese City Studies, East China Normal University, Shanghai 200062, China
    2. Center for Studies of Administrative Division of China, East China Normal University, Shanghai 200241, China
    3. School of Urban and Regional Science, East China Normal University, Shanghai 200241, China
  • Received:2020-01-09 Revised:2020-04-12 Online:2021-05-10 Published:2021-07-15
  • Supported by:
    National Social Science Foundation of China(19AZD007)

Abstract:

Internet finance industry has grown rapidly in China and as a result, this phenomenon has caught more and more attention from the government as well as the community. However, internet finance companies are gathered in specific cities, which can be related to the high survival risks these enterprises facing. In other words, the survival and the development of internet financial enterprises is restricted by spatio-temporal factors to a certain extent, in the form of agglomeration economies. This article studies the case of P2P online lending platforms to explore spatio-temporal survival variations of internet finance companies in China and their influencing factors. It firstly shows the graphs of cities where platforms enter and exit normally or abnormally from 2009 to 2017. Then, it applies the competing risk model to assess the normal and abnormal exit risks these platforms facing in terms of agglomeration economies. The results can be summarized as follows: 1) Shenzhen, Shanghai, Beijing and their surrounding areas are hotspots of P2P platforms’ entry and exit, and the lifespans of platforms differ in different cities. 2) Urban economy and platform experience are conducive to platforms’ survival and compliance growth. Encouraging policies are conducive to compliance platforms’ survival but increase the possibility of abnormal exit, while late entry time will limit platforms’ survival. 3) Agglomeration economies are the main effects on the survival of P2P platforms. Their survival is closely related to the temporal and spatial choices of enterprises when they enter the market. By exploring the spatio-temporal variations of internet finance enterprises’ survival and their influence factors, this article provides a reference for relevant enterprises’ spatio-temporal decisions and the formulation of government policies.

Key words: internet finance, P2P lending, survival analysis, agglomeration economies, financial geography