Abstract:

This study aims to analyze how perceived financial risk affect investor’s decision to invest continuously through peer to peer lending (P2P) platform in Indonesia. We also examine how perceptions of information asymmetry and perceptions of regulatory uncertainty affect investor’s perception regarding financial risk of investing through the platform. We collected data from 107 respondents who are investors in P2P lending platform in Indonesia using closed questionnaire in 6-Likert’s scale. After conducting reliability and validity test, we analyze the data using PLS-SEM method. We found that both perceived information asymmetry and perceived regulatory uncertainty positively affect to investor’s financial risk perception, while perceived financial risk negatively affect to investors continuance intention. However, perceived financial risks ability to explain investor’s intention to invest continuously is only 16,5% despite that perceived information asymmetry and perceived regulatory uncertainty able to explain about perceived financial risk is about 62,5%.