How Perceived Risk Affects Continuance Intention to Invest through Peer-to-Peer Lending Platforms: Indonesia Case

This study aims to analyze how perceived financial risk affects an investor’s decision to invest continuously through peer-to-peer lending (P2P) platforms in Indonesia. We also examine how perceptions of information asymmetry and perceptions of regulatory uncertainty affect an investor’s perceptions regarding the financial risk of investing through the platform. We collected data from 107respondents who are investors in a P2P lending platform in Indonesia using a closed questionnaire on a 6-point Likert scale. After conducting reliability and validity tests, we analyze the data using the PLS-SEM method. We found that both perceived information asymmetry and perceived regulatory uncertainty positively affect an investor’s financial risk perceptions, while perceived financial risk negatively affects an investor’s continuance intention. However, perceived financial risk's ability to explain an investor’s intention to invest continuously is only 16.5%, despite that the perceived information asymmetry and perceived regulatory uncertainty reveal that perceived financial risk is about 62.5%.