Is it Value Creative to Follow Wealth Advisors' Advice? The Cases from A Bank

• Main Authors: Pan, Shu-Miao, 潘叙妙
• Other Authors: Shu, Pei-Gi
• Format: Others
• Language: zh-TW
• Published: 2011
• Online Access: http://ndltd.ncl.edu.tw/handle/41876666117702750791

碩士 === 輔仁大學 === 金融與國際企業學系金融碩士班 === 99 === Local financial institutions have been adapting new business models to cope with the environment of descending interest rate in recent decades. The wealth management sector has become one of the most important sectors in banking business. As investors and wealth advisors are getting matured, especially after the experience of global financial crisis taking place in 2008, it is imperative to investigate how they interact and whether taking wealth advisors’ advice is value creative or destructive to the client’s wealth. Using the selected sample from a renowned bank in Taiwan, I explore an issue of whether it is value creative to follow the wealth advisors’ advice, and whether the performance measures are different under different financial advisors. The findings of this study are summarized as follows. 1. The odds of investor obedience to the financial advisor’s advice are positively correlated with the size of investor’s portfolio. 2. The performance of obedient investors does not significantly differ from that of non-obedient ones. 3. The odds of investor obedience are positively correlated with the length of time that the financial advisor stays in the assets pool under his/her control. 4. Female clients are more likely to obey financial advisors than male clients. 5. The odds of obedience are positively correlated with the proportion of foreign assets comprising of a client’s portfolio.