COVID-19 pandemic risk and probability of loan default: evidence from marketplace lending market

Financial Innovation

Table 6 COVID-19 risk and the likelihood of loan default: the role of FinTech adoption

Variables	DV = DEFAULT
Variables	(1)	(2)	(3)
Panel A: high FinTech adoption
PANDEMIC_DUMMY	0.267*** (0.007)
DAILY_CASES		0.003*** (0.000)
DAILY_DEATHS			0.025*** (0.001)
Loan originator individual effects	Yes	Yes	Yes
Controls	Yes	Yes	Yes
LR chi2	75,221.734	58,608.936	58,155.240
Prob > chi2	0.000	0.000	0.000
Pseudo-R-squared	0.171	0.191	0.189
N	588,385	415,370	415,370
Panel B: low FinTech adoption
PANDEMIC_DUMMY	0.392*** (0.023)
DAILY_CASES		0.009*** (0.001)
DAILY_DEATHS			0.216*** (0.057)
Loan originator individual effects	Yes	Yes	Yes
Controls	Yes	Yes	Yes
LR chi2	10,252.819	5555.505	5532.129
Prob > chi2	0.000	0.000	0.000
Pseudo-R-squared	0.164	0.219	0.218
N	226,487	87,783	87,783

Table reports the results for two panels. Panel A reports the findings of logit regression analysis for countries with high levels of FinTech adoption. Panel B reports the same findings for countries with low levels of FinTech adoption. The panels are based on countries’ FinTech Development Index (Findexable 2019) being higher/lower than the global median. All model specifications employ robust standard errors in parentheses (*p < 0.10, **p < 0.05, ***p < 0.01)