Fintech Platforms and Mutual Fund Distribution

Claire Yurong Hong (), Xiaomeng Lu () and Jun Pan ()
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Claire Yurong Hong: Shanghai Advanced Institute of Finance, Shanghai Jiao Tong University, Shanghai 200030, China
Xiaomeng Lu: Fanhai International School of Finance, Fudan University, Shanghai 200433, China
Jun Pan: Shanghai Advanced Institute of Finance, Shanghai Jiao Tong University, Shanghai 200030, China; China Academy of Financial Research, Shanghai 200030, China

Management Science, 2025, vol. 71, issue 1, 488-517

Abstract: We document a novel platform effect caused by the emergence of fintech platforms in the intermediation of financial products. 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.

Keywords: FinTech; platforms; centralized distribution; flow-performance sensitivity; managerial risk taking (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:inm:ormnsc:v:71:y:2025:i:1:p:488-517

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