TAILIEUCHUNG - Financial advice and portfolio diversification

This paper examines whether households diversify their investment portfolios and whether portfolio diversification could be affected by where investors seek advice. We found that respondents find advice from banks, insurance companies, and brokerage houses less helpful compared to reading investment research and financial periodicals when making their portfolio decisions. | http afr. Accounting and Finance Research Vol. 8 No. 4 2019 Financial Advice and Portfolio Diversification Augustine C. Arize1 Tao Guo2 John Malindretos2 Ikechukwu Ndu3 Lawrence Verzani2 department of Economics and Finance College of Business Texas A M Commerce 2Department of Economics Finance and Global Business Cotsakos College of Business William Paterson University 3 Birback College University of London Correspondence John Malindretos Department of Economics Finance and Global Business Cotsakos College of Business William Paterson University USA. E-mail jnmalindre@ Received April 22 2019 Accepted October 27 2019 Online Published November 5 2019 doi URL https Abstract This paper examines whether households diversify their investment portfolios and whether portfolio diversification could be affected by where investors seek advice. We found that respondents find advice from banks insurance companies and brokerage houses less helpful compared to reading investment research and financial periodicals when making their portfolio decisions. Comparing among the advice from all type of financial institution or financial professionals it is found that advice from brokerage houses is still the most helpful. But when looking at their actual portfolio diversification those who rely on brokers advice ended up with a less diversified portfolio. These findings support our hypothesis that investors portfolio could be negatively influenced because of the services they received from brokerage houses. Keywords brokerage houses diversification financial advisors investment advice portfolios 1. Introduction This paper examines the normative suggestion within the investment literature that households diversify their investment portfolios and whether portfolio diversification could be affected by where investors seek advice. Failure for households to diversify their investment portfolios means they will be .

• Kế toán - Kiểm toán
• Brokerage houses
• Financial advisors
• Investment advice
• Portfolio diversification
• Diversified portfolio