The Predisposition of Women to Use the Services of a Financial Planner for Saving and Investing
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| Language: | English |
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The Ohio State University / OhioLINK
2009
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| Online Access: | http://rave.ohiolink.edu/etdc/view?acc_num=osu1259767469 |
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ndltd-OhioLink-oai-etd.ohiolink.edu-osu1259767469 |
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oai_dc |
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NDLTD |
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English |
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NDLTD |
| topic |
Behaviorial Sciences Demographics Economics Families and Family Life Finance Gender Home Economics Womens Studies gender financial planning economics of information information search married couples Survey of Consumer Finances SCF SAS logistic regression decomposition analysis |
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Behaviorial Sciences Demographics Economics Families and Family Life Finance Gender Home Economics Womens Studies gender financial planning economics of information information search married couples Survey of Consumer Finances SCF SAS logistic regression decomposition analysis Evans, David A. The Predisposition of Women to Use the Services of a Financial Planner for Saving and Investing |
| author |
Evans, David A. |
| author_facet |
Evans, David A. |
| author_sort |
Evans, David A. |
| title |
The Predisposition of Women to Use the Services of a Financial Planner for Saving and Investing |
| title_short |
The Predisposition of Women to Use the Services of a Financial Planner for Saving and Investing |
| title_full |
The Predisposition of Women to Use the Services of a Financial Planner for Saving and Investing |
| title_fullStr |
The Predisposition of Women to Use the Services of a Financial Planner for Saving and Investing |
| title_full_unstemmed |
The Predisposition of Women to Use the Services of a Financial Planner for Saving and Investing |
| title_sort |
predisposition of women to use the services of a financial planner for saving and investing |
| publisher |
The Ohio State University / OhioLINK |
| publishDate |
2009 |
| url |
http://rave.ohiolink.edu/etdc/view?acc_num=osu1259767469 |
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AT evansdavida thepredispositionofwomentousetheservicesofafinancialplannerforsavingandinvesting AT evansdavida predispositionofwomentousetheservicesofafinancialplannerforsavingandinvesting |
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1719428454955352064 |
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ndltd-OhioLink-oai-etd.ohiolink.edu-osu12597674692021-08-03T05:57:37Z The Predisposition of Women to Use the Services of a Financial Planner for Saving and Investing Evans, David A. Behaviorial Sciences Demographics Economics Families and Family Life Finance Gender Home Economics Womens Studies gender financial planning economics of information information search married couples Survey of Consumer Finances SCF SAS logistic regression decomposition analysis This is a study of the decision to use a financial planner in saving and investing decisions. Satterthwaite’s (1979) improvements upon Stigler’s (1961) model of the economics of information were used to define the practice of financial planning as a reputation good. The theory of the economics of information was used to model the likelihood of married couple households to prefer the services of a financial planner over other sources of information. In addition to search theory, seminal and current help-seeking articles revealed a need to place significant emphasis on the differences between men and women in their external search efforts for a financial professional. The objective of this study was to examine the predisposition of women to ask for help in financial affairs over men. An unweighted sample of 2,691 married couple households from the 2004 Survey of Consumer Finances was used to obtain the data necessary to achieve this objective. The respondent of the survey was the spouse who was most familiar with the household’s finances. Each household was instructed to select the financially most knowledgeable spouse as the respondent for the survey. Within the sample of married couple households and only among those who used a financial planner, a weighted 23% of households had husband respondents who used a planner and 24% of households had wife respondents who used a planner. An initial logit model revealed that compared to male respondents in a married couple household, being a female respondent was positively associated with the likelihood of choosing a financial planner for saving and investment advice; having household income in the 10% and 15% tax bracket in 2004 was negatively associated with using a financial planner compared to households in the 25% bracket; having greater than or equal to $100,000 in financial assets was positively associated with using a financial planner; and being willing to take financial risks was negatively associated with using a financial planner. The method for testing the predisposition of women to use a financial planner is known as decomposition analysis and was used to enable the empirical model to allow the independent variable coefficients to differ between male and female spouses. The findings from the decomposition method did not allow for the rejection of the null hypothesis that men and women exhibit the same association between their personal characteristics and the likelihood of using a planner, but these findings were clouded by multicollinearity. As a result, emphasis is placed on the findings from the reduced empirical model. Based on the findings of this study, implications are drawn for the use of consumers, financial planners, and financial governing boards such as the Securities Exchange Commission and the Financial Industry Regulatory Authority. Respondents with at least $100,000 in financial assets are more than twice as likely to turn to a financial planner for saving and investment advice as those with financial assets fewer than $50,000 (see table 5.2). Significant amounts of wealth are thus entrusted to an advisor. Consumers must consequently take care in making sure their planner is trustworthy, fair and accurate.The nature of the business of financial planning is such that interaction with couples is a highly regular occurrence. The findings from this study, among other things, suggest that a planner should be conscious of who considers themselves the financially most knowledgeable spouse in a married couple household. Based on this study’s results, that simple identification process could produce a wealth of information about the clients before they even begin to fill out the client intake forms. Targeted questions can be created for households in which the husband is the financially most knowledgeable and consequently for wives with the same designation.Finally, based on the findings of this study, existing resources for consumers of financial services such as those provided by the Financial Industry Regulatory Authority (FINRA), the Certified Financial Planner Board of Standards Inc. (CFP), the Securities and Exchange Commission (SEC) and the Financial Planning Association (FPA) should be able to begin formulating targeted information for men and women separately. The needs of husbands clearly differ from those of wives who manage the household’s financial resources based on the findings in this study. 2009 English text The Ohio State University / OhioLINK http://rave.ohiolink.edu/etdc/view?acc_num=osu1259767469 http://rave.ohiolink.edu/etdc/view?acc_num=osu1259767469 unrestricted This thesis or dissertation is protected by copyright: all rights reserved. It may not be copied or redistributed beyond the terms of applicable copyright laws. |