Automatic vs Manual Investing: Role of Past Performance

Said Kaawach, Oskar Kowalewski () and Oleksandr Talavera ()

Discussion Papers from Department of Economics, University of Birmingham

Abstract: Using unique data from a leading peer-to-peer (P2P) lending platform, we investigate the link between past investment performance and choice of auto-investing tool. Our results suggest that investors with poorly performing loan portfolios are more likely to switch automatically. This negative relationship can be explained by algorithmic aversion or investor inattention. In other words, the results suggest that good-performing investors who pay close attention to their loan portfolios or are not interested in using automated services are more likely to rely on themselves in manual mode. These results are robust to alternative specifications.

Keywords: FinTech; Peer-to-Peer Lending; Investor Switching; Automatic Bidding (search for similar items in EconPapers)
JEL-codes: D90 G11 G40 G51 (search for similar items in EconPapers)
Pages: 34 pages
Date: 2023-05
New Economics Papers: this item is included in nep-ban, nep-cfn, nep-des and nep-pay
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://repec.cal.bham.ac.uk/pdf/23-04.pdf

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bir:birmec:23-04

Access Statistics for this paper

More papers in Discussion Papers from Department of Economics, University of Birmingham Contact information at EDIRC.
Bibliographic data for series maintained by Oleksandr Talavera ().