Financial advisors: a case of babysitters?
- We merge administrative information from a large German discount brokerage firm with regional data to examine if financial advisors improve portfolio performance. Our data track accounts of 32,751 randomly selected individual customers over 66 months and allow direct comparison of performance across self-managed accounts and accounts run by, or in consultation with, independent financial advisors. In contrast to the picture painted by simple descriptive statistics, econometric analysis that corrects for the endogeneity of the choice of having a financial advisor suggests that advisors are associated with lower total and excess account returns, higher portfolio risk and probabilities of losses, and higher trading frequency and portfolio turnover relative to what account owners of given characteristics tend to achieve on their own. Regression analysis of who uses an IFA suggests that IFAs are matched with richer, older investors rather than with poorer, younger ones.
Verfasserangaben: | Andreas HackethalORCiDGND, Michael HaliassosORCiDGND, Tullio JappelliORCiDGND |
---|---|
URN: | urn:nbn:de:hebis:30-63751 |
Titel des übergeordneten Werkes (Deutsch): | Center for Financial Studies (Frankfurt am Main): CFS working paper series ; No. 2009,04 |
Schriftenreihe (Bandnummer): | CFS working paper series (2009, 04) |
Dokumentart: | Arbeitspapier |
Sprache: | Englisch |
Jahr der Fertigstellung: | 2009 |
Jahr der Erstveröffentlichung: | 2009 |
Veröffentlichende Institution: | Universitätsbibliothek Johann Christian Senckenberg |
Datum der Freischaltung: | 16.04.2009 |
Freies Schlagwort / Tag: | Financial Advice; Household Finance; Portfolio Choice |
GND-Schlagwort: | Deutschland; Discount Broker |
Ausgabe / Heft: | This Draft: March 15, 2009 |
Bemerkung: | First Draft: November 2008 ; This Draft: March 15, 2009 |
HeBIS-PPN: | 211771503 |
Institute: | Wissenschaftliche Zentren und koordinierte Programme / Center for Financial Studies (CFS) |
DDC-Klassifikation: | 3 Sozialwissenschaften / 33 Wirtschaft / 330 Wirtschaft |
Lizenz (Deutsch): | ![]() |