IDEAS home Printed from https://ideas.repec.org/p/shf/wpaper/2020009.html

Financial Advice and Household Financial Portfolios

Author

Listed:
  • Sarah Brown

    (Department of Economics, University of Sheffield, UK and IZN Bonn)

  • Alessandro Bucciol

    (University of Verona, Department of Economics, Via Cantarane 24, 37129 Verona, Italy.)

  • Alberto Montagnoli

    (Department of Economics, University of Sheffield, UK)

  • Karl Taylor

    (Department of Economics, University of Sheffield, UK and IZN Bonn)

Abstract

We investigate the role of financial advice in shaping the composition of UK household portfolios. Advice is associated with a reallocation of wealth away from real estate and towards bonds and stocks, especially when households seek financial advice "for investments". Having a consultation with a stockbroker has a particularly large effect on the portfolio share in stocks. However, even free financial advice has a positive effect on the shares in bonds and stocks, compared to not receiving advice. Finally, we find a positive association between alternative measures of portfolio risk and the composition of the portfolio, whilst accounting for financial advice.

Suggested Citation

  • Sarah Brown & Alessandro Bucciol & Alberto Montagnoli & Karl Taylor, 2020. "Financial Advice and Household Financial Portfolios," Working Papers 2020009, The University of Sheffield, Department of Economics.
    • Handle: RePEc:shf:wpaper:2020009
    as

    Download full text from publisher

    File URL: https://www.sheffield.ac.uk/economics/research/serps
    File Function: First version, November 2020
    Download Restriction: no
    ---><---

    Other versions of this item:

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Florent Nkouaga & Jeffrey Czajkowski & Kelly Edmiston & Brenda Rourke, 2025. "Modeling Behavioral and Attitudinal Drivers of Life Insurance Selection and Premiums: Polynomial Approaches to Perceived Affordability in Term and Cash Value Products," JRFM, MDPI, vol. 18(9), pages 1-33, September.
    2. Zhang, Taiyu & Ren, Xiaohang & Chen, Songsheng, 2025. "The impact of managerial myopia on corporate resilience: From the perspectives of resistance and recovery," Finance Research Letters, Elsevier, vol. 74(C).
    3. Lynn, Peter & Fumagalli, Laura & Muñoz-Bugarin, Jair, 2021. "Investigating the role of debt advice on borrowers’ well-being. An encouragement study on a new sample of over-indebted people in Britain," ISER Working Paper Series 2021-08, Institute for Social and Economic Research.

    More about this item

    Keywords

    ;
    ;
    ;

    JEL classification:

    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:shf:wpaper:2020009. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Mike Crabtree The email address of this maintainer does not seem to be valid anymore. Please ask Mike Crabtree to update the entry or send us the correct address (email available below). General contact details of provider: https://edirc.repec.org/data/desheuk.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.