FinTech, Investor Sophistication, and Financial Portfolio Choices

Leonardo Gambacorta, Romina Gambacorta and Roxana Mihet

The Review of Corporate Finance Studies, 2023, vol. 12, issue 4, 834-866

Abstract: This paper analyzes the links between advances in financial technology, investors’ sophistication, and the composition and returns of their financial portfolios. We develop a simple portfolio choice model under asymmetric information and derive some theoretical predictions. Using detailed microdata from Banca d’Italia, we test these predictions for Italian households over the period 2004-2020. In general, heterogeneity in portfolio composition and in returns between sophisticated and unsophisticated investors grows with improvements in financial technology. This heterogeneity is reduced only if financial technology is accessible to everyone and if investors have a similar capacity to use it. (JEL: G1, G5, G4, D83, L8, O3)Authors have furnished an Internet Appendix, which is available on the Oxford University Press Web site next to the link to the final published paper online.

Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1093/rcfs/cfad014 (application/pdf)
Access to full text is restricted to subscribers.

Related works:
Working Paper: Fintech, investor sophistication and financial portfolio choices (2023)
Working Paper: FinTech, investor sophistication and financial portfolio choices (2023)
Working Paper: FinTech, Investor Sophistication and Financial Portfolio Choices (2023)
Working Paper: FinTech, investor sophistication and financial portfolio choices (2023)
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:oup:rcorpf:v:12:y:2023:i:4:p:834-866.

Access Statistics for this article

The Review of Corporate Finance Studies is currently edited by Andrew Ellul

More articles in The Review of Corporate Finance Studies from Society for Financial Studies
Bibliographic data for series maintained by Oxford University Press ().