Mobile Devices and Investment Apps: The Effects of Information Release, Push Notification and the Fear of Missing Out

46 Pages Posted: 24 Jun 2017 Last revised: 25 Aug 2019

See all articles by Shana Clor-Proell

Shana Clor-Proell

Texas Christian University - Department of Accounting

Ryan Guggenmos

Cornell University - Samuel Curtis Johnson Graduate School of Management

Kristina M. Rennekamp

SC Johnson Graduate School of Business; Cornell SC Johnson College of Business

Date Written: August 22, 2019

Abstract

We examine how information dissemination via mobile device applications (apps) affects nonprofessional investors’ judgments. In response to the prevalence of mobile device use, the media ungroups content into smaller pieces to accommodate users, and apps use push notifications to highlight this content. These changes increase users’ ability to access investment information in real time, leaving some investors feeling as if they are missing out if they are not continuously connected. We validate a scale to capture investors’ fear of missing out on investment information (I-FoMO) and document that I-FoMO is distinct from traditional FoMO that occurs in social settings. Then, using an experiment, we find that receiving ungrouped content via a mobile device has a greater effect on investment allocations in the presence, rather than absence, of push notifications. Further, we find that these results hold for higher, but not for lower, I-FoMO investors.

Keywords: investment apps; mobile communication; push notifications; fear of missing out; information release

JEL Classification: M40; M41; O33

Suggested Citation

Clor-Proell, Shana and Guggenmos, Ryan and Rennekamp, Kristina M., Mobile Devices and Investment Apps: The Effects of Information Release, Push Notification and the Fear of Missing Out (August 22, 2019). Available at SSRN: https://ssrn.com/abstract=2991262 or http://dx.doi.org/10.2139/ssrn.2991262

Shana Clor-Proell (Contact Author)

Texas Christian University - Department of Accounting ( email )

M.J. Neeley School of Business
TCU Box 298530
Fort Worth, TX 76129
United States

Ryan Guggenmos

Cornell University - Samuel Curtis Johnson Graduate School of Management ( email )

Ithaca, NY 14853
United States

Kristina M. Rennekamp

SC Johnson Graduate School of Business ( email )

Ithaca, NY 14853
United States
607-255-0500 (Phone)

Cornell SC Johnson College of Business ( email )

Ithaca, NY 14850
United States

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