Topic: Do Internet Finance Platforms Mitigate Conflicts of Interest? The Case of Mutual Fund Investment
Speaker: Chloe Chunliu Yang, Fudan University
Time: Wednesday, 19 June, 10:00-11:30
Location: Room 217, Guanghua Building 2
Online trading may lead to greater over-trading due to investor over-confidence (Barber and Odean, 2002). This paper studies an offsetting mechanism: online platforms can reduce over-trading induced by financial intermediaries’ desire for more fees. Using proprietary individual investor trading data from a large mutual fund family in China, we show that over-trading by investors at banks is likely greater than the Barber-Odean effect at the online platforms. This is especially true for female investors or low net-worth investors. As a placebo test, trading on financial products without conflicts of interest exhibits no difference in turnover at banks versus online platforms.
Chunliu Yang is an Assistant Professor of Finance at Fanhai International School of Finance, Fudan University. She has earned her Ph.D. in Finance from INSEAD and her research interests mainly focus on Empirical and Theoretical Asset Pricing, Mutual Funds, Investor Behavior, Behavioral Finance, etc.
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