When Financial Advice Leads to Positive Performance: Evidence from Repeated Client-Advisor Interactions

• 成果类型: Article; Early Access
• 署名作者: Uhr, Charline
• 署名单位: Danish Finance Institute; Aarhus University
• 刊物名称: REVIEW OF FINANCIAL STUDIES
• ISSN/ISSBN: 0893-9454
• DOI: 10.1093/rfs/hhaf056
• 发表日期: 2025
• 关键词: mutual funds; SMART MONEY; attention; literacy; returns; explain

摘要

Does the performance of advisors' recommendations influence investors' propensity to seek advice again? I investigate a sample of calls between 10,063 German brokerage clients and financial advisors from 2005-2015. If advisors' recommendations in the initial meeting led to positive (vs. negative) performance, investors are 2.1 times more likely to arrange a second meeting. This effect is driven by the performance of the recommendations the investor decided to follow. Investors with positive performance follow recommendations to a greater degree. The findings show that experiences matter in the advisory context and shape the demand for advice.