![Sample our Economics, Finance,Business & Industry journals, sign in here to start your access, latest two full volumes FREE to you for 14 days]({"type":"image" , "src" : "/sda/5931/TOC-Subject-Sample-2021-Economics-Finance-Business-Industry.jpg"})
ABSTRACT
This paper examines how mobile device usage affect retail investors’ lottery behaviour. Using data from the Chinese stock market, which is dominated by retail investors, we observe a structural change in mobile investing trends in 2015. By employing a structural shift model, we find that higher mobile device usage in the market disproportionately increases the trading volume of lottery stocks and amplifies the lottery-related pricing anomaly. Our results suggest that the use of mobile devices increases retail investors’ demand for lottery stocks by attention-induced trading, but fail to find evidence that mobile devices influence retail investors’ inherent skewness preferences.
Disclosure statement
No potential conflict of interest was reported by the author(s).
Notes
1 For example, Barber et al. (Citation2021) find that Robinhood presents a unique “top mover” list which directs users to pay more attention to the stocks on the list.
2 Baidu search index on mobile devices is only available since January 2011.
3 The removal of the “one-person-one-account” restriction in April 2015 may also move investors to use mobile devices because the opening another online account can easily operate on the apps.