TY  - JOUR
A1  - Meyer, Steffen
A1  - Uhr, Charline
A1  - Loos, Benjamin
A1  - Hackethal, Andreas
T1  - Switching from commissions on mutual funds to flat-fees: How are advisory clients affected?
T2  - Journal of economic behavior & organization
N2  - Using a field study at a German brokerage, we investigate advised individual investors’ behavior and outcomes after self-selecting into a flat-fee scheme (percentage of portfolio value) for mutual funds. In a difference-in-differences setting, we compare 699 switchers to propensity-score-matched advisory clients who remained in the commission-based scheme. Switchers increase their portfolio values, improve portfolio diversification, and increase their portfolio performance. They also demand more financial advice and follow more advisor recommendations. We argue that switchers attribute a higher quality to the unchanged advisory services.
KW  - Household finance
KW  - Individual investor
KW  - Financial advice
KW  - Inducements
KW  - Consumer financial protection
Y1  - 2023
UR  - http://publikationen.ub.uni-frankfurt.de/frontdoor/index/index/docId/77092
UR  - https://nbn-resolving.org/urn:nbn:de:hebis:30:3-770923
SN  - 0167-2681
VL  - 209
SP  - 423
EP  - 449
PB  - Elsevier
CY  - Amsterdam [u.a.]
ER  -