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FinTech Platforms and Mutual Fund Distribution / Claire Yurong Hong, Xiaomeng Lu, Jun Pan.

NBER Working papers Available online

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Format:
Book
Author/Creator:
Hong, Claire Yurong.
Contributor:
National Bureau of Economic Research.
Lu, Xiaomeng.
Pan, Jun.
Series:
Working Paper Series (National Bureau of Economic Research) no. w26576.
NBER working paper series no. w26576
Language:
English
Physical Description:
1 online resource: illustrations (black and white);
Place of Publication:
Cambridge, Mass. National Bureau of Economic Research 2019.
Summary:
We document a novel platform effect caused by the emergence of FinTech platforms in financial intermediation. In China, platform distributions of mutual funds emerged in 2012 and grew quickly into a formidable presence. Utilizing the staggered entrance of funds onto platforms, we find a marked increase of performance-chasing, driven by the centralized information flow unique to FinTech platforms. This pattern is further confirmed using proprietary data from a top platform. Examining the platform impact on fund managers, we find that, incentivized by the amplified performance-chasing, fund managers increase risk taking to enhance their probability of getting onto the top ranking.
Notes:
Print version record
December 2019.

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