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dc.creatorHackethal, Andreas
dc.creatorLaudenbach, Christine
dc.creatorMeyer, Steffen
dc.creatorWeber, Annika
dc.date.accessioned2021-11-02T10:27:32Z
dc.date.available2021-11-02T10:27:32Z
dc.date.issued2018-07-23
dc.identifier.urihttps://fiftest.hebis.de/xmlui/handle/123456789/4792
dc.description.abstractWe use minutes from 17,000 financial advisory sessions and corresponding client portfolio data to study how client involvement affects advisor recommendations and portfolio outcomes. We find that advisors confronted with acquiescent clients stick to standards and recommend expensive but well diversified mutual fund portfolios. However, if advisors meet with clients who voice own ideas they 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.
dc.rightsAttribution-ShareAlike 4.0 International
dc.rights.urihttp://creativecommons.org/licenses/by-sa/4.0/
dc.subjectHousehold Finance
dc.titleClient Involvement in Expert Advice: Antibiotics in Finance?
dc.typeWorking Paper
dcterms.referenceshttps://fiftest.hebis.de/xmlui/handle/123456789/5080?FiFo
dc.identifier.safeno219
dc.subject.keywordsfinancial advice
dc.subject.keywordsindividual investors
dc.subject.keywordsclient involvement
dc.subject.jelD14
dc.subject.jelG11
dc.subject.jelG21
dc.subject.topic1training
dc.subject.topic1sale
dc.subject.topic1addition
dc.subject.topic2standardize
dc.subject.topic2mystery
dc.subject.topic2organization
dc.subject.topic3portfolio
dc.subject.topic3tufano
dc.subject.topic3capture
dc.source.filename219_SSRN-id3178664
dc.subject.topic1nameCorporate Finance
dc.subject.topic2nameCorporate Governance
dc.subject.topic3nameSaving and Borrowing
dc.identifier.doi10.2139/ssrn.3178664


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Attribution-ShareAlike 4.0 International
Except where otherwise noted, this item's license is described as Attribution-ShareAlike 4.0 International