Real Estate Shocks and Financial Advisor Misconduct

• 成果类型: Article
• 署名作者: Dimmock, Stephen G.; Gerken, William C.; Van Alfen, Tyson
• 署名单位: National University of Singapore; University of Kentucky; Southern Illinois University System; Southern Illinois University
• 刊物名称: JOURNAL OF FINANCE
• ISSN/ISSBN: 0022-1082
• DOI: 10.1111/jofi.13067
• 发表日期: 2021
• 页码: 3309-3346
• 关键词: house prices; consumption; WEALTH; COSTS; advice; equity; OWNERSHIP; DYNAMICS; BROKERS; FRAUD

摘要

We test whether personal real estate shocks affect professional misconduct by financial advisors. We use a panel of advisors' home addresses and examine within-advisor variation relative to other advisors who work at the same firm and live in the same ZIP code. We find a negative relation between housing returns and misconduct. We show that advisors' housing returns explain misconduct against out-of-state customers, breaking the link between customer and advisor housing shocks. Furthermore, the results are stronger for advisors with lower career risk from committing misconduct, and for advisors with greater borrowing constraints.