 Can investment advisors promote rational investment? Evidence from micro-data in ChinaXiaomeng Lu, Yong Zhang, Yixing Zhang and Lin Wang Economic Modelling, 2020, vol. 86, issue C, 251-263 Abstract: Investment advisors are important participants in financial markets. With the increasing demand for household financial asset management in China, the role of investment advisors is being widely discussed. Taking investors’ degree of diversification as the proxy of the rational investment, this study examines the role of investment advisors in promoting rational investments. It finds that investors with investment advisors are more likely to invest rationally. Further analysis shows that investment advisors play a greater role in promoting rational investment of investors with more investment experience, better financial literacy, more investible assets and male. The conclusions of this study indicate that giving full play to the role of professional investment advisors in household asset allocations and encouraging investors to invest rationally is important for the prevention of financial risks and the promotion of the healthy development of the financial market. Keywords: Investment advisor; Rational investment; Investment experience; Financial literacy (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:ecmode:v:86:y:2020:i:c:p:251-263 DOI: 10.1016/j.econmod.2019.10.011 Access Statistics for this article Economic Modelling is currently edited by S. Hall and P. Pauly More articles in Economic Modelling from Elsevier |
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