The Impact of Financial Advisors on Individual Investor Portfolio Performance

2009 ◽  
Author(s):  
Marc Kramer ◽  
Robert Lensink
Keyword(s):  
Portfolio Performance ◽  
Financial Advisors ◽  
Individual Investor ◽  
The Impact

scholarly journals Factors Impacting Pharmaceutical Prices and Affordability: Narrative Review

Pharmacy ◽  
2020 ◽  
Vol 9 (1) ◽  
pp. 1
Author(s):  
Kah Seng Lee ◽  
Yaman Walid Kassab ◽  
Nur Akmar Taha ◽  
Zainol Akbar Zainal
Keyword(s):  
Narrative Review ◽  
Financial Advisors ◽  
Cost Information ◽  
Electronic Prescription ◽  
Related Information ◽  
Pharmaceutical Distribution ◽  
Out Of Pocket Expenses ◽  
Additional Charges ◽  
The Impact ◽  
Pharmaceutical Prices

Increasing prescription drug pricing often reflects additional work stress on medical professionals because they function as financial advisors for patients and help them manage out-of-pocket expenses. Providers or prescribers wish to help patients with prescription costs but often lack related information. Healthcare plan providers try to display prescription and drug cost information on their websites, but such data may not be linked to electronic prescription software. A mark-up is defined as the additional charges and costs that are applied to the price of a product for the purpose of covering overhead costs, distribution charges, and profit. Therefore, the policies implemented in the pharmaceutical distribution chain might include the regulation of wholesale and retails mark-ups and pharmaceutical remuneration. If mark-ups are regulated, countries are highly recommended to use regressive mark-ups rather than fixed percentage mark-ups. This narrative review provides insights into the framework of pharmaceutical mark-up systems by describing different factors impacting pharmaceutical prices and affordability. These include the interplay of medicine pricing and the supply chain, the impact of pertinent laws and regulation and out-of-pocket expenditure.

Does financial advisor quality improve liquidity and issuer benefits in segmented markets? Evidence from the municipal bond market

2018 ◽  
Vol 30 (4) ◽  
pp. 440-458
Author(s):  
Kenneth Daniels ◽  
Jack Dorminey ◽  
Brent Smith ◽  
Jayaraman Vijayakumar
Keyword(s):  
Bond Market ◽  
Current Data ◽  
Financial Advisors ◽  
Municipal Bond ◽  
High Quality ◽  
Regression Estimate ◽  
Content Type ◽  
Financial Advisor ◽  
Revenue Bonds ◽  
The Impact

Purpose Using a unique sample of about 563,000 competitively bid municipal revenue bonds with financial advisors issued during the period 1998–2012, the purpose of this paper is to examine the role and influence of financial advisor quality in the municipal bond market. Design/methodology/approach The authors use a sample of about 563,000 competitively bid municipal revenue bonds with financial advisors issued during the period 1998–2012. The authors estimate a selection model where the authors identify the factors leading to the selection of a high-quality financial advisor. The authors then, using the inverse mills ratio from the first regression, estimate the association of high-quality advisor (and other factors) with the cost of borrowing. Findings The results suggest that high-quality financial advisors provide a credible signal to market participants about issue and issuer quality. This signal translates to a greater number of bids for issues that use high-quality financial advisors, resulting in improved liquidity and lower borrowing costs for these issues. The results also show that the beneficial effects obtained by using higher quality financial advisors are prevalent across all categories of issues such as for refunding and non-refunding issues, and for both insured and non-insured issues. The benefits are also generally observed for issues of most size categories. The results also suggest that the passage of the Dodd–Frank Act requiring mandatory registration of financial advisors and enhanced scrutiny has only increased the benefits to issuers from using higher quality financial advisors. Originality/value This paper differs from previous research in several important ways. First, the study is, to the authors’ knowledge, the first study that explores the relationship between financial advisor quality and liquidity in the municipal sector. The authors show using higher quality financial advisors enhances liquidity for the issues by attracting a significantly large number of bids. Second, the sample is exclusively comprised of competitively bid revenue issues all of which rely on financial advisors. This enables us to examine more unambiguously the influence of financial advisor quality, without the confounding effects of issues without financial advisors. Third, time coverage (1998–2012) and size of the sample (roughly 563,000 bond issues) enables us to conduct varied sub-sample analyses with greater power since the resulting sub-sample partitions themselves are of very large size. This provides better and additional insights into the role of financial advisor quality. The more current data when compared to prior research enables us to examine the impact of financial advisor quality inter-temporally with special attention devoted to the period after passage of the Dodd–Frank Act.

Categorizing sentiment and its impact on REIT returns

2015 ◽  
Vol 41 (9) ◽  
pp. 958-973 ◽  
Author(s):  
Daniel Huerta ◽  
Dave O. Jackson ◽  
Thanh Ngo
Keyword(s):  
Investor Sentiment ◽  
Institutional Investor ◽  
Individual Investors ◽  
Individual Investor ◽  
Content Type ◽  
Portfolio Rebalancing ◽  
Multiple Sample ◽  
Security Pricing ◽  
And Performance ◽  
The Impact

Purpose – The purpose of this paper is to reexamine the impact of investor sentiment on real estate investment trust (REIT) returns using direct, survey-based measures of sentiment to categorize sentiment from institutional and individual investors. Design/methodology/approach – The authors provide a framework in which sentiment is classified into individual and institutional investor sentiment under the assumption that investors, depending on sophistication, react differently to the same set of information and will influence REIT prices differently. The authors employ a methodology that uses panel regression analyses and divides the sample of REITs into size and performance portfolios. Findings – The regression results suggest that institutional investor sentiment is positively and significantly related to REIT returns contemporaneously for multiple sample specifications. These results are consistent with high levels of institutional ownership in REITs. Results also suggest that individual investor sentiment only influences small capitalization and low-α portfolios. Originality/value – The findings provide more evidence on the influence of investor sentiment on security pricing even for highly regulated sectors such as the REIT industry. Investors may use changes in sentiment as signals for portfolio rebalancing and capital allocations.

Factors influencing the choice of financial advisor by women stock investors in Punjab

2017 ◽  
Vol 59 (2) ◽  
pp. 192-201
Author(s):  
Mandeep Kaur ◽  
Tina Vohra
Keyword(s):  
Service Providers ◽  
Age Groups ◽  
Financial Advisors ◽  
Women Clients ◽  
Content Type ◽  
Financial Advisor ◽  
Investment Advisor ◽  
The Impact ◽  
Structured Questionnaire

Purpose The paper aims to attempt to identify the attributes that women look for in their financial advisor and to examine if the choice of attributes of a financial advisor among women investors in Punjab is the same across demographics. The understanding of the attributes that women want in their financial advisor will help the financial advisors to be mindful of the opportunities and the challenges they have to face while working with women investors. Studying the impact of demographics on the choice of the investment advisor would enable the service providers to provide women with services relevant to their unique and individual situations. Design/methodology/approach A pre-tested, well-structured questionnaire was constructed and administered personally, and the responses of 200 women investors were analyzed. The sum of the ranks assigned by women to various attributes determining the choice of a financial advisor was used to find out the most preferred attribute on the basis of which women choose their financial advisor. The Kruskal Wallis test was used to analyze the impact of demographics on the choice of the respondents. Findings The results of the study brought out that the friendliness of the financial advisor, and the quality of advice provided by them are preferred attributes determining the choice of a financial advisor. Along with this, the results also state that the preference for the attribute friendliness and quality of advice is not the same across age groups. The choice of attributes also varies according to the marital status of the respondents. Practical implications The current study will contribute toward a greater understanding of the attributes which are considered important by women while choosing their financial advisor. The study will help the financial advisors to cater to the needs of their women clients. Moreover, the study will also benefit women by bringing about a positive change in the attitude of the financial advisors in favor of them. The greater sensitization of the financial advisors toward their women clients would lead to greater stock market participation among women, thereby benefitting the society. Originality/value The paper is an attempt to identify the attributes that women look for in their financial advisor and to examine if the choice of attributes of a financial advisor among women investors in Punjab is the same across demographics or not. Therefore, the study contributes to the understanding of the investment behavior of women.

Overconfidence and Disposition Effect in Indian Equity Market: An Empirical Evidence

2017 ◽  
Vol 19 (5) ◽  
pp. 1303-1321 ◽  
Author(s):  
Jaya M. Prosad ◽  
Sujata Kapoor ◽  
Jhumur Sengupta ◽  
Saurav Roychoudhary
Keyword(s):  
Empirical Evidence ◽  
Equity Market ◽  
Disposition Effect ◽  
Impulse Response Functions ◽  
Individual Investor ◽  
Var Models ◽  
The Individual ◽  
Overconfidence Bias ◽  
The Impact ◽  
Individual Security

The article investigates the presence of the disposition effect and overconfidence in the Indian equity market during 2006–2013 and provides some robust empirical evidence. It applies bivariate and trivariate vector autoregression (VAR) models and associated impulse response functions on the Indian equity market from NIFTY 50 index and individual security returns. The study arrives at three key findings. First, the presence of the biases, overconfidence and the disposition effect is detected in Indian equity market for our sample period. Second, the impact of these two biases can be distinctly segregated for 20 companies among the companies in the index. Lastly, the overconfidence bias is found to be predominant of the two. The study endorses the fact that like other developing markets, the Indian markets are not so efficient with respect to overconfidence and the disposition effect. This article is one of the few to provide empirical evidence for the behavioural issues (i.e., overconfidence and the disposition effect) at a market level that is otherwise studied at the individual investor level.

Exploring the impact of emotional intelligence on portfolio performance

Humanomics ◽  
2016 ◽  
Vol 32 (4) ◽  
pp. 474-497 ◽  
Author(s):  
Hani El-Chaarani
Keyword(s):  
Emotional Intelligence ◽  
Positive Impact ◽  
Empirical Studies ◽  
High Capacity ◽  
Portfolio Performance ◽  
Content Type ◽  
Intelligence Level ◽  
Emotional Process ◽  
International Investors ◽  
The Impact

Purpose The main purpose of this research is to empirically test the impacts of emotional intelligence score and emotional intelligence processing on the performance of investor’s portfolio. Design/methodology/approach A mail questionnaire survey was conducted on a sample of 983 international investors. The total number of usable responses received was 197 giving a response rate of 20.4 per cent. From 197 investors, 46 accepted to complete the experiment study during two trading hours for each investor from January first until February 19, 2015. Findings The results reveal a positive impact of emotional intelligence on portfolio performance. Additional analysis shows that the emotional intelligence process has a significant impact on the portfolio performance. The higher impact is revealed when the investors understand the markets tendency, manage their own emotions, take their financial decisions and finally control their personnel emotions during market fluctuations. The lower impact is detected when investors take reactive decisions after perceiving the markets tendency. This research also reveals that the investors have high capacity to manage and control their emotions during market fluctuations especially who are characterized by high emotional intelligence level. Research limitations/implications The first limit of this research is the exploration of limited number of investors and financial operations during limited period. Therefore, the results could not be generalized, and further studies should include larger samples during larger period. The second limitation concerns the used variables to measure the portfolio performance and the emotional intelligence level. For future studies, it will be preferred to use other quantitative and qualitative variables lead to measure the different analytical dimensions of portfolio performance and emotional intelligence. Practical implications The results hold implications for investors that seek to enhance efficiently and effectively the portfolio performance. It also prompts investors to focus on effort that can improve the management and the control of personnel emotions. Originality/value This paper presents one of the first empirical studies that attempt to explore how emotional intelligence and, particularly, emotional process serve to sustain the performance of portfolio during market fluctuations.

Sign in / Sign up

Export Citation Format

Share Document