Millionaire_Investors_EJF Baeckstrom Silvester Povnall (accepted).pdf (851.23 kB)

Millionaire investors: financial advisors, attribution theory and gender differences

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journal contribution
posted on 18.09.2019 by Ylva Baeckström, Joanne Silvester, Rachel A. J. Pownall
To date little attention has been paid to how social cognitive bias can influence how financial advisors interpret and respond to the needs of millionaire investors, and if this varies depending on the gender of the investor. This research investigates whether experienced professional financial advisors who work with millionaire investors make different attributions for the control and knowledge that investors have of their investments, and if they make different investment portfolio recommendations to equivalent male and female investors. Using methodology novel to finance, this vignette-based study that controls for gender finds evidence that professional financial advisors judge millionaire female investors to have less control over their investment portfolios relative to men. Empirical results also show that female advisors judge women to be less knowledgeable about investments than men. Despite such perceptual differences, advisors recommend equally risky portfolios to male and female investors. These results have implications for wealth management institutions and the monitoring of financial advisors for millionaire individuals.

History

School

  • Business and Economics

Department

  • Business

Published in

The European Journal of Finance

Volume

24

Issue

15

Pages

1333 - 1349

Publisher

Taylor & Francis

Version

AM (Accepted Manuscript)

Rights holder

© Informa UK Limited, trading as Taylor & Francis Group

Publisher statement

This is an Accepted Manuscript of an article published by Taylor & Francis in The European Journal of Finance on 21 February 2018, available online: http://www.tandfonline.com/10.1080/1351847X.2018.1438301.

Acceptance date

30/01/2018

Publication date

2018-02-21

Copyright date

2018

ISSN

1351-847X

eISSN

1466-4364

Language

en

Depositor

Prof Jo Silvester

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