The thesis titled ‘User Interface and First-hand Experience in Retail Investing’, authored by Professor Liao Li and Assistant Professor Wang Zhengwei's research team, is accepted by the top academic journal Review of Financial Studies. This is the first thesis on fintech from mainland that is accepted by world top financial journals.

The paper discussed the topic that, when there is limited time for decision making, how do the investors make the decisions in financial markets?

Through the data analysis of an online loan investment platform, the paper finds out that, under the time pressure, investors tend to concentrate more on the rate of return, while more likely neglecting the risks. There is rationality in this simple investment strategy. Though concentrating more on risks can increase income, the effect is very limited or even missing the opportunity of investment.

The paper also finds out that, cell-phone terminal users are more likely to pay more attention on rate of return, than PC terminal users. The main cause of the phenomenon is the different information display on cell-phone and PC terminals. Experiment shows that, when the information display highlights ‘risks’, investor pays more attention on risks.

Other than that, in the aspect of investment correction, investor learning from his/her failure experience will more easily correct investment deviation, while producing little effect learning from other's failing experience.

The paper provides a new angle of understanding investment behaviors in the fintech era.

Meanwhile, mobile internet and fintech is developing vigorously. More and more investments are made through cell-phone terminal, and more and more investments are made hastily. How investors treat the information display on cell-phone terminal? What deviation will be caused by hasty investment? The research provides more inspiration.

 

 

Li LIAO, Chair Professor and Executive Associate Dean of Tsinghua University PBC School of Finance,  Dean of Tsinghua University Institute for Fintech Research, editor of Tsinghua Financial Review. His research interest is on internet finance and corporate finance.

Zhengwei WANG, Associate Dean and Assistant Professor at Tsinghua University PBC School of Finance, Deputy Director of Research Center for Intelligent Finance. His research interest is on fintech, consumer/household finance and corporate finance.

Jia XIANG, Ph.D candidate at Tsinghua University PBC School of Finance. Jia Xiang earned his bachelor degree in economics from Peking University in 2014, his doctor degree in applied economics at Tsinghua University in 2018. His research interest is on fintech and behavior finance.

Hongjun YAN, Chair and Director of Richard H. Driehaus Center for Behavioral Finance at DePaul University. He gained his doctor degree at LSE in 2005. His research interest is on asset pricing, especially on market friction and behavior finance.

Jun YANG, Associate Professor of Finance at Kelley School of Business, Indiana University. Her research interest is on corporate finance and fintech.