TY  - UNPD
A1  - Hackethal, Andreas
A1  - Laudenbach, Christine
A1  - Meyer, Steffen
A1  - Weber, Annika
T1  - Client involvement in expert advice - antibiotics in finance?
T2  - SAFE working paper series ; No. 219
N2  - We use minutes from 17,000 financial advisory sessions and corresponding client portfolio data to study how active client involvement affects advisor recommendations and portfolio outcomes. We find that advisors confronted with acquiescent clients stick to their standards and recommend expensive but well diversified mutual fund portfolios. However, if clients take an active role in the meetings, advisors deviate markedly from their standards, resulting in poorer portfolio diversification and lower Sharpe ratios. Our findings that advisors cater to client requests parallel the phenomenon of doctors prescribing antibiotics to insistent patients even if inappropriate, and imply that pandering diminishes the quality of advice.
T3  - SAFE working paper - 219 
KW  - financial advice
KW  - individual investors
KW  - client involvement
Y1  - 2018
UR  - http://publikationen.ub.uni-frankfurt.de/frontdoor/index/index/docId/47203
UR  - https://nbn-resolving.org/urn:nbn:de:hebis:30:3-472031
UR  - https://ssrn.com/abstract=3178664
IS  - July 23, 2018
PB  - SAFE
CY  - Frankfurt am Main
ER  -