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Table 8 Regression results recovery rate in the overall sample

From: Fintech platforms: Lax or careful borrowers’ screening?

 

(1)

(2)

(3)

Beta

Zero-inflate

Beta

Zero-inflate

Beta

Zero-inflate

Not verified

− 0.042*** (0.0043)

0.1169*** (0.0100)

− 0.0054*** (0.0058)

0.138*** (0.0146)

− 0.0412*** (0.0055)

0.0896*** (0.0130)

ln(Loan Amount)

0.0003 (0.0030)

0.0445*** (0.0738)

− 0.0049 (0.0057)

− 0.0531*** (0.0110)

0.0088 (0.0099)

− 0.0183 (0.0230)

Term

0.028*** (0.0042)

0.172*** (0.0102)

− 0.0061*** (0.0005)

0.171*** (0.0149)

− 0.00407*** (0.0055)

0.259*** (0.0135)

Interest rate

− 0.0006 (0.0004)

− 0.026 (0.0009)

− 0.024*** (0.0042)

− 0.0225*** (0.0014)

− 0.00126*** (0.0005)

− 0.0334*** (0.0012)

Revolving utilitation

  

− 0.0539*** (0.0139)

− 0.338*** (0.0364)

  

Months since last delinquent

  

0.0006*** (0.0001)

0.00215*** (0.0003)

  

Total account

  

0.00137*** (0.0002)

− 0.0015*** (0.0005)

  

Bankcard balance > 75%

  

6.94e−05 (9.06e−05)

0.0009*** (0.00024)

  

Debt to income ratio

  

0.00182*** (0.0002)

0.00850*** (0.0006)

  

Mortgage account

  

− 0.0053*** (0.0013)

− 0.0070** (0.0035)

  

ln(Annual Income)

    

0.0282*** (0.0106)

− 0.0423* (0.0245)

Employment length

    

0.00100 (0.0007)

0.00764*** (0.00165)

Loan to annual income

    

− 0.263*** (0.0482)

1.008*** (0.105)

Loan purpose: credit card

    

0.0264*** (0.0098)

0.135*** (0.0242)

Loan purpose: debt consolidation

    

0.0243*** (0.00870)

0.0775*** (0.0217)

Loan purpose: small business

    

− 0.146*** (0.0190)

− 0.0550 (0.0492)

Home mortgaged

    

− 0.00809 (0.103)

− 0.0492** (0.299)

Home owned

    

0.0432 (0.103)

− 0.0950* (0.299)

3-digit zip

    

Yes

Yes

Year

    

0.191*** (0.00458)

0.716*** (0.0112)

Observations

291,664

 

145,646

 

177,963

 

AIC

− 105,632

 

− 62,897

 

− 73,825

 

BIC

− 105,516

 

− 62,630

 

− 73,381

 
  1. The table reports results from beta regression and the logit model on RR with indicators and continuous explanatory variables. Both in the beta models and zero-inflated are reported the coefficients. The standards errors are in parentheses. All models are estimated with intercepts. The primary independent variable is associated with the verification process. Other control variables are inserted, like loan contract information and borrower’ characteristics. For brevity, only the loan’s significance is exposed. The borrowers’ state is based on the first three-digit ZIP code, captured into ten dummy variables building on the classification of the United States. The estimated goodness of fit is shown
  2. ***, ** and * denotes significance at levels 1%, 5%, and 10% levels, respectively