The Market for Financial Adviser Misconduct
By Mark L. Egan, Gregor Matvos, Amit Seru. Journal of Political Economy, 2016
291 citations recorded by the source corpus.
We document the economywide extent of misconduct among financial advisers and the associated labor market consequences. Seven percent of advisers have misconduct records, and this share reaches more than 15 percent at some of the largest firms. Roughly one-third of advisers with misconduct are repeat offenders. Approximately half of advisers lose their jobs after misconduct. The labor market partially undoes firm-level discipline by rehiring such advisers. Firms that persistently engage in misconduct coexist with firms that have clean records. We show that this phenomenon may be explained by some firms “specializing” in misconduct and catering to unsophisticated consumers.
Subfields: Accounting, Economics and Econometrics, Sociology and Political Science
View Paper: https://www.semanticscholar.org/paper/468d9c3b12d8fe9bbb8fee7f2315f87c4be877ed
How researchers see this paper
The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.
In Accounting
In Economics and Econometrics
In Sociology and Political Science
Citations in the corpus
- The Misguided Beliefs of Financial Advisors (2020, background): “French (2008) highlights a puzzle of active management.”
- The FinTech Opportunity (2016, unknown): “Egan et al. (2016) showed that misconduct was concentrated in firms with retail customers and in counties with low education, elderly populations, and high incomes.”