The quality of financial advice: What influences recommendations to clients?

B-Tier
Journal: Journal of Banking & Finance
Year: 2024
Volume: 169
Issue: C

Authors (3)

d’Astous, Philippe (not in RePEc) Gemmo, Irina (not in RePEc) Michaud, Pierre-Carl (HEC Montréal (École des Hautes...)

Score contribution per author:

0.670 = (α=2.01 / 3 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

In this paper, we conduct a field experiment with a large sample of financial planner professionals in Canada to elicit factors which may influence client recommendations. Using repeated client vignettes, we find that recommendations are sensitive in expected ways to relative costs and benefits of particular products as well as client characteristics. We show that, in some domains, planners are more likely to recommend products they own themselves, their spouse owns, or they are licensed to sell. We provide evidence that product familiarity can negatively impact the quality of financial advice in specific situations. Finally, we find evidence for an effect of client involvement in the investment domain, but we do not find economically significant gender effects.

Technical Details

RePEc Handle
repec:eee:jbfina:v:169:y:2024:i:c:s037842662400205x
Journal Field
Finance
Author Count
3
Added to Database
2026-01-26