Smartphone Trading Technology, Investor Behavior, and Mutual Fund Performance

• 成果类型: Article
• 署名作者: Cen, Xiao
• 署名单位: Texas A&M University System; Texas A&M University College Station; Mays Business School
• 刊物名称: MANAGEMENT SCIENCE
• ISSN/ISSBN: 0025-1909
• DOI: 10.1287/mnsc.2021.02099
• 发表日期: 2024
• 页码: 6897-6916
• 关键词: smartphone technology; INVESTMENT; Mutual fund; FinTech; INVESTOR BEHAVIOR

摘要

Using proprietary individual-level trading data around a natural experiment- the release of a smartphone trading app by a large investment advisor-this study investigates how smartphone trading technology affects retail investor behavior and mutual fund performance. App adoption by retail investors leads to an increase in investor attention and trading volume. App adopters' flows become more sensitive to short-term fund returns and market sentiment, resulting in higher aggregate flow volume among adopters. The funds more exposed to the shock experience a greater decline in abnormal returns, likely attributable to higher fund flow volume and liquidity costs. As a result, both adopters and nonadopters experience a decline in their mutual fund investment returns.