Abstract
Employing a unique dataset of real-world mutual fund portfolio choices made by more than 3,000 Italian investors over a period of 13 years, this paper aims to test whether the portfolio risk level of investors who have a tied agent as their financial advisor is similar to that of those who have a bank employee as their financial advisor. Despite the theoretical presence of an agency problem between tied agents and investors, our results show that investors who have a tied agent as their financial advisor have lower portfolio risk levels compared with those who have a bank employee as their financial advisor.
| Original language | English |
|---|---|
| Pages (from-to) | 99-110 |
| Number of pages | 12 |
| Journal | International Journal of Business Research |
| Volume | 22 |
| DOIs | |
| Publication status | Published - 2022 |
Keywords
- financial advice
- mutual funds
- decision making
- financial advisory