Do investment advisors’ personal perceptions affect customers’ investments?

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dc.contributor Aalto University en
dc.contributor Aalto-yliopisto fi Paulanto, Visa 2012-02-10T11:29:26Z 2012-02-10T11:29:26Z 2012
dc.description.abstract PURPOSE OF THE STUDY The study has two main objectives. Firstly, I assess whether investment advisor?s personal characteristics or perceptions affect their customers? willingness to take risks by controlling traditional risk determinants such as age, gender, education, investment experience, wealth, and income. Secondly, I study whether these same characteristics or perceptions affect customers? personal investments and stock market participation. DATA The data is gathered from a large Finnish commercial bank?s customers and their investment advisors. Customer?s data is based on bank?s Investment Advisory Tool (IAT) which was collected in financial advisor?s client meetings between February 2007 and March 2011. IAT-questionnaire aims to determine private investors? attitudes toward risk and suggest investment opportunities accordingly. Investment advisors? data is based on a modified risk attitude questionnaire, which was collected in April 2011. The data is gathered from customers and advisors who belong to one of the group?s six largest banks. In total, the whole data includes 26,997 private Finnish investors? risk profiles and 105 investment advisor risk profiles. All data is masked in a way that no investor or advisor can be identified from the dataset. RESULTS Findings of the study indicate that advisor characteristics and perceptions seem to have an effect on their customers? risk attitudes. I find that advisor?s risk attitude, male gender, education and experience have positive effect on customers? willingness to take risks. Instead, having carried out FASD examination or advisor?s personal interests to invest in stocks or other assets seem to decrease customers? risk taking. Moreover, it appears that advisor?s age, FASD qualification and male gender increase customers? stock market participation. However, advisors? personal risk taking doesn?t seem to affect their customers? investments. en
dc.format.extent 82
dc.language.iso en en
dc.title Do investment advisors’ personal perceptions affect customers’ investments? en
dc.type G2 Pro gradu, diplomityö fi Kauppakorkeakoulu fi School of Economics en
dc.contributor.department Department of Finance en
dc.contributor.department Rahoituksen laitos fi
dc.subject.keyword investment advisor
dc.subject.keyword risk preference
dc.subject.keyword portfolio allocation
dc.subject.keyword risk determinant
dc.subject.keyword stock market participation
dc.identifier.urn URN:NBN:fi:aalto-201305163176
dc.type.dcmitype text en
dc.programme.major Finance en
dc.programme.major Rahoitus fi
dc.type.ontasot Master's thesis en
dc.type.ontasot Pro gradu tutkielma fi
dc.subject.helecon rahoitus
dc.subject.helecon financing
dc.subject.helecon sijoitukset
dc.subject.helecon investments
dc.subject.helecon neuvonta
dc.subject.helecon counselling
dc.subject.helecon riski
dc.subject.helecon risk
dc.subject.helecon portfolio
dc.subject.helecon portfolio
dc.ethesisid 12727 2012-01-20
dc.location P1 I

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