Fintech vs. traditional financial services: how are investors reacting?

• Autor(a) principal: Zhou Wenyi
• Data de Publicação: 2021
• Tipo de documento: Dissertação
• Idioma: eng
• Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
• Texto Completo: http://hdl.handle.net/10071/23911
• topic: Fintech; Traditional finance; Macroeconomic variables; Multiple linear regression method; Finanças tradicionais; Variáveis macroeconômicas; Método de regressão linear múltipla

Financial technology (fintech) has experienced dramatic growth in the 21st century while the traditional finance sector is facing challenges of innovative and convenient services brought by financial technology in the U.S after the 2008 crisis. This dissertation intends to study whether investors view U.S fintech differently from traditional finance under the influence of macroeconomic variables (total non-farm payroll, S&P500 index, the spread of 10-year and 2-year Government Bonds, and 3-month LIBOR). We establish multiple linear regression models for U.S fintech (the KFTX index as a representative) and traditional finance (represented by the S&P 500 Financials Services Select Sector Index) respectively to investigate the relationship between the above four macroeconomic variables from 2016 to 2020 and then obtain their comparative model by the difference between their log returns in empirical analysis. We observe that total non-farm payroll, and S&P 500 index are both statistically relevant in explaining the variations of the S&P 500 Financials Services Select Sector Index and the KFTX index while the S&P 500 Financials Services Select Sector Index is also influenced by the positive and statistically significant effects of 3-month LIBOR and the spread of 10-year and 2-year Government Bonds. In addition, we figure out that when 3-month LIBOR or 10-year and 2-year Government Bonds spread rises, investors are inclined to buy more traditional financial stock represented by the S&P 500 Financials Services Select Sector Index than the fintech assets represented by the KFTX index.