 Individual investment adaptations to COVID-19 lockdownsBin Huang, Bin Wang and Zixuan Chen The North American Journal of Economics and Finance, 2024, vol. 70, issue C Abstract: Utilizing online wealth management data from Ant Financial and manually curated data from COVID-19 lockdown regions in China, this study sheds light on the impact of COVID-19 lockdowns on individual investment pattern. Applying a Staggered Difference-in-Differences methodology, we find significant decrease in both the volume and proportion of individual holdings in risky mutual funds after their initial exposure to lockdowns. This decline mainly corresponds to a decrease in risky mutual fund purchases and an increase in redemptions. Mechanism analysis reveals this change is due to a notable decrease in individuals’ overall assets during lockdowns, leading to a higher allocation toward risk-free money market funds. Heterogeneity analysis highlights these impacts are more pronounced among individuals with lower risk tolerance. Additionally, there is a notable drop in individuals’ equity fund holdings. The lockdowns prompt a conservative shift in individuals’ wealth strategies. Keywords: Risky mutual fund; Individual investment decisions; Risk-taking; COVID-19 lockdown (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:ecofin:v:70:y:2024:i:c:s1062940823001948 DOI: 10.1016/j.najef.2023.102071 Access Statistics for this article The North American Journal of Economics and Finance is currently edited by Hamid Beladi More articles in The North American Journal of Economics and Finance from Elsevier |
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