FinTech Platforms and Mutual Fund Distribution

Claire Yurong Hong, Xiaomeng Lu and Jun Pan

No 26576, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: 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.

JEL-codes: G0 G10 G15 G2 G20 G23 G4 G40 G5 (search for similar items in EconPapers)
Date: 2019-12
New Economics Papers: this item is included in nep-tra
Note: AP
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