The Misguided Beliefs of Financial Advisors
ABSTRACT A common view of retail finance is that conflicts of interest contribute to the high cost of advice. Within a large sample of Canadian financial advisors and their clients, however, we show that advisors typically invest personally just as they advise their clients. Advisors trade frequently, chase returns, prefer expensive and actively managed funds, and underdiversify. Advisors' net returns of −3% per year are similar to their clients' net returns. Advisors do not strategically hold expensive portfolios only to convince clients to do the same; they continue to do so after they leave the industry.
Belief Disagreement and Portfolio Choice
Maarten Meeuwis, Jonathan A. Parker, Antoinette Schoar, Duncan Simester · Journal of Finance
What Matters to Individual Investors? Evidence from the Horse's Mouth
James J. Choi, Adriana Robertson · Journal of Finance
Prospect Theory and Stock Market Anomalies
Nicholas Barberis, Lawrence J. Jin, BAOLIAN WANG · Journal of Finance
Low‐Risk Anomalies?
Paul Schneider, Christian Wagner, Josef Zechner · Journal of Finance
Global Pricing of Carbon‐Transition Risk
Patrick Bolton, Marcin Kacperczyk · Journal of Finance
Is There a Replication Crisis in Finance?
Theis Ingerslev Jensen, Bryan Kelly, Lasse Heje Pedersen · Journal of Finance
Factor Momentum and the Momentum Factor
Sina Ehsani, Juhani T. Linnainmaa · Journal of Finance
Taming the Factor Zoo: A Test of New Factors
Guanhao Feng, Stefano Giglio, Dacheng Xiu · Journal of Finance