Is Unbiased Financial Advice to Retail Investors Sufficient? Answers from a Large Field Study

By Utpal Bhattacharya, Andreas Hackethal, Simon Kaesler, Benjamin Loos, Steffen Meyer. 2012

360 citations recorded by the source corpus.

Subfields: Accounting, Economics and Econometrics, Finance

View Paper: https://www.semanticscholar.org/paper/ba7ff0f78df041044dd95ac97bbb97c981b30ead

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Citations in the corpus

Financial Literacy and the Demand for Financial Advice (2015, neutral): “thermore, Bhattacharya et al. (2012) find that, when offering free financial advice to the customers of a large German brokerage firms, more financially sophisticated investors (as measured by past portfolio performance) are more likely to accept the offer.”
Financial Literacy, Confidence and Financial Advice Seeking (2016, result): “We confirm some of the results from prior studies on other determinants of advice seeking (Bhattacharya et al., 2012; Bluethgen et al., 2008; Hackethal et al., 2012).”
Is conflicted investment advice better than no advice? (2020, background): “13 An interesting exception is Bhattacharya et al. (2012), who use an experimental design to estimate the causal effect of offering unbiased recommendations to investors who are not actively seeking them. In our framework, this corresponds to estimating: E[Z|(No, Yes(Unbiased))] - E[Y|(No, No)]. The”
Financial literacy, financial advice, and financial behavior (2017, background): “In a related study, Bhattacharya et al. (2012) find that those customers of a German online broker who opted to obtain financial advice in a field study were among the most financially literate clients, and Hackethal et al. (2012) show that advisors of a large German retail bank are matched with wea”
Who Uses Financial Reports and for What Purpose? Evidence from Capital Providers (2014, neutral): “Experimental evidence indicates that retail investors tend to ignore relevant information even if it is targeted at their needs and provided free of charge (Bhattacharya et al., 2012).”
Consumer resistance and inertia of retail investors: Development of the resistance adoption inertia continuance (RAIC) framework (2020, neutral): “Retail investors, as opposed to wealthy individual investors or institutional investors, hold modest investment portfolios (Graham and Kumar, 2006); they have considerably lower investment acumen and receive little personalized consideration from professional advisors (Bhattacharya et al., 2012).”
The Promises and Pitfalls of Robo-Advising (2019, background): “, see Bhattacharya et al. (2012)) is that robo-advising includes an automatic, simple, and immediate procedure investors can use to implement the advice they receive – investors merely need to click on a button to execute a large set of trades in batch mode. Instead, earlier forms of unbiased advice”