Financial advisors influence on private investors’ financial decisions
Master thesis
Permanent lenke
http://hdl.handle.net/11250/2637543Utgivelsesdato
2019Metadata
Vis full innførselSamlinger
- Master of Science [1822]
Sammendrag
Most individual retail investors today rely on recommendations from financial
advice when investing in stocks or bonds. Understanding the impact of financial
advice on individual investors portfolio decision is thus of great importance, yet
relatively little is known about this topic. This paper contributes to the
understanding of the effects of financial advice on investors’ asset allocation and
examines whether clients act according to their estimated risk profile or if other
determinants influence their decisions. Our results show that financial advisors
exert little influence over their clients’ asset allocation, and differences is rather
due to clients’ attributes, particularly risk tolerance and investment horizon.
Further, we find no evidence that deviations from recommended investment
(based on clients’ attributes) are due to advisors’ influence. Actually, the findings
indicate a weak explanatory power of both client and advisor characteristics on
equity deviation, and a remarkable difference in client’s deviation from
recommendations remains unexplained.
Beskrivelse
Masteroppgave(MSc) in Master of Science in Business, Finance - Handelshøyskolen BI, 2019