Although considerable evidence suggests that setting goals increases the odds of behavior changes that lead to goal attainment, less research has been conducted examining what underlying traits allow some to successfully attain their goals when others do not. This study, using the Theory of Planned Behavior, examines the affects of individual control beliefs on financial goal progress. Findings suggest that low control beliefs are significantly associated with less financial-goal progress; however, the receipt of expert financial advice can reduce this negative effect and result in higher levels of goal progress than that of individuals with high control beliefs.
{"title":"Does a relationship with a financial service professional overcome a client’s sense of not being in control of achieving their goals?","authors":"Danielle D. Winchester, Sandra J. Huston","doi":"10.61190/fsr.v23i1.3183","DOIUrl":"https://doi.org/10.61190/fsr.v23i1.3183","url":null,"abstract":"\u0000 \u0000 \u0000Although considerable evidence suggests that setting goals increases the odds of behavior changes that lead to goal attainment, less research has been conducted examining what underlying traits allow some to successfully attain their goals when others do not. This study, using the Theory of Planned Behavior, examines the affects of individual control beliefs on financial goal progress. Findings suggest that low control beliefs are significantly associated with less financial-goal progress; however, the receipt of expert financial advice can reduce this negative effect and result in higher levels of goal progress than that of individuals with high control beliefs. \u0000 \u0000 \u0000","PeriodicalId":100530,"journal":{"name":"Financial Services Review","volume":"136 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2014-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"73494071","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Mutual fund companies market the strong performance of funds created through incubation to gain the attention of investors who value recent returns. This creates an incentive for fund families to select highly skewed securities because extreme performance during incubation will increase the likelihood that some funds will outperform before they are sold to the public. Although incubation is as an innovative fund promotion technique, it may harm investors by creating the perception that random prior returns are a signal of fund quality. We find that net new money flow increases with an incubated fund’s skewness. After incubated funds are sold to the public, skewed funds attract more investor dollars and their average performance declines. These results suggest that the use of skewed securities during incubation is an effective method for increasing demand, but may be a poor quality signal of future performance.
{"title":"Investor preference for skewness and the incubation of mutual funds","authors":"Philip Gibson, Michael S. Finke","doi":"10.61190/fsr.v23i1.3186","DOIUrl":"https://doi.org/10.61190/fsr.v23i1.3186","url":null,"abstract":"\u0000 \u0000 \u0000Mutual fund companies market the strong performance of funds created through incubation to gain the attention of investors who value recent returns. This creates an incentive for fund families to select highly skewed securities because extreme performance during incubation will increase the likelihood that some funds will outperform before they are sold to the public. Although incubation is as an innovative fund promotion technique, it may harm investors by creating the perception that random prior returns are a signal of fund quality. We find that net new money flow increases with an incubated fund’s skewness. After incubated funds are sold to the public, skewed funds attract more investor dollars and their average performance declines. These results suggest that the use of skewed securities during incubation is an effective method for increasing demand, but may be a poor quality signal of future performance. \u0000 \u0000 \u0000","PeriodicalId":100530,"journal":{"name":"Financial Services Review","volume":"33 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2014-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"78491517","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This study analyzes 115 actively managed domestic healthcare mutual funds over the period 1/2000 –12/2011. Findings of this study show that, on average, healthcare mutual funds outperform the passive index by roughly 2.97% per year after controlling for the market risk premium, growth and size premiums, and momentum effects. Further, this study documents that the abnormal over- and under-performance does not persist over subsequent periods. In other words, under- and over- performances are mean reverting.
{"title":"Performance and persistence of performance of healthcare mutual funds","authors":"Abhay Kaushik, Lynn K. Saubert, R. W. Saubert","doi":"10.61190/fsr.v23i1.3187","DOIUrl":"https://doi.org/10.61190/fsr.v23i1.3187","url":null,"abstract":"\u0000 \u0000 \u0000This study analyzes 115 actively managed domestic healthcare mutual funds over the period 1/2000 –12/2011. Findings of this study show that, on average, healthcare mutual funds outperform the passive index by roughly 2.97% per year after controlling for the market risk premium, growth and size premiums, and momentum effects. Further, this study documents that the abnormal over- and under-performance does not persist over subsequent periods. In other words, under- and over- performances are mean reverting. \u0000 \u0000 \u0000","PeriodicalId":100530,"journal":{"name":"Financial Services Review","volume":"389 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2014-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"76995642","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2001-12-01DOI: 10.1016/S1057-0810(01)00075-0
Ralph R. Trecartin Jr.
This study examines whether the book-to-market ratio consistently explains the cross-section of stock returns through time. The results reveal that the book-to-market ratio is positively and significantly related to return in only 43% of the monthly regressions. Other value/growth variables such as Cash Flow,” “Sales Growth,” and “Size”; perform even more erratically than the book-to-market ratio, and are thus less likely to be viewed as legitimate risk proxies.
{"title":"The reliability of the book-to-market ratio as a risk proxy","authors":"Ralph R. Trecartin Jr.","doi":"10.1016/S1057-0810(01)00075-0","DOIUrl":"10.1016/S1057-0810(01)00075-0","url":null,"abstract":"<div><p>This study examines whether the book-to-market ratio consistently explains the cross-section of stock returns through time. The results reveal that the book-to-market ratio is positively and significantly related to return in only 43% of the monthly regressions. Other value/growth variables such as Cash Flow,” “Sales Growth,” and “Size”; perform even more erratically than the book-to-market ratio, and are thus less likely to be viewed as legitimate risk proxies.</p></div>","PeriodicalId":100530,"journal":{"name":"Financial Services Review","volume":"9 4","pages":"Pages 361-373"},"PeriodicalIF":0.0,"publicationDate":"2001-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1016/S1057-0810(01)00075-0","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"74383382","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2001-12-01DOI: 10.1016/S1057-0810(01)00072-5
Steve P. Fraser , William W. Jennings , David R. King
This paper demonstrates the dramatic effect of Social Security wealth on individuals’ asset allocation. We first discuss why Social Security wealth should be included in portfolio asset-mix decisions. We then draw parallels between Social Security benefits and inflation-indexed treasury bonds to help quantify the present value of Social Security benefits. Finally, we show the portfolio impact of including Social Security wealth under several asset-mix decision rules. Excluding Social Security wealth from the asset mix decision results in suboptimal portfolios. Including Social Security wealth provides an incentive for including more stock in the asset mix.
{"title":"Strategic asset allocation for individual investors: the impact of the present value of Social Security benefits","authors":"Steve P. Fraser , William W. Jennings , David R. King","doi":"10.1016/S1057-0810(01)00072-5","DOIUrl":"10.1016/S1057-0810(01)00072-5","url":null,"abstract":"<div><p>This paper demonstrates the dramatic effect of Social Security wealth on individuals’ asset allocation. We first discuss why Social Security wealth should be included in portfolio asset-mix decisions. We then draw parallels between Social Security benefits and inflation-indexed treasury bonds to help quantify the present value of Social Security benefits. Finally, we show the portfolio impact of including Social Security wealth under several asset-mix decision rules. Excluding Social Security wealth from the asset mix decision results in suboptimal portfolios. Including Social Security wealth provides an incentive for including more stock in the asset mix.</p></div>","PeriodicalId":100530,"journal":{"name":"Financial Services Review","volume":"9 4","pages":"Pages 295-326"},"PeriodicalIF":0.0,"publicationDate":"2001-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1016/S1057-0810(01)00072-5","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"84907534","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2001-12-01DOI: 10.1016/S1057-0810(01)00076-2
Barbara S. Poole
This paper provides a brief review of the anthropology and psychology literature as it relates to time, an important variable in finance. First, the paper discusses ways that individuals represent time, and introduces cultural variations in the perception of time. Then the experience of time passing, and behavioral pace, is discussed. The succession of time and the orientation toward past, present, and future, are described. The paper may provide implications for academics whose finance research is related to behavior over time.
{"title":"On time: contributions from the social sciences","authors":"Barbara S. Poole","doi":"10.1016/S1057-0810(01)00076-2","DOIUrl":"10.1016/S1057-0810(01)00076-2","url":null,"abstract":"<div><p>This paper provides a brief review of the anthropology and psychology literature as it relates to time, an important variable in finance. First, the paper discusses ways that individuals represent time, and introduces cultural variations in the perception of time. Then the experience of time passing, and behavioral pace, is discussed. The succession of time and the orientation toward past, present, and future, are described. The paper may provide implications for academics whose finance research is related to behavior over time.</p></div>","PeriodicalId":100530,"journal":{"name":"Financial Services Review","volume":"9 4","pages":"Pages 375-387"},"PeriodicalIF":0.0,"publicationDate":"2001-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1016/S1057-0810(01)00076-2","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"90018186","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2001-12-01DOI: 10.1016/S1057-0810(01)00073-7
D.Anthony Plath , Thomas H. Stevenson
African-American consumers differ markedly from their Caucasian counterparts in terms of financial product preferences, product research, and investment asset portfolio composition. This study examines some of the principal differences between African-American and Caucasian households in evaluating and purchasing investment assets and explores differences in asset holdings between the two racial groups. This information can help financial planners seeking to market to the African-American community better understand this community, tailor investment information for the unique needs of this community, and render more effective service to individuals and families that comprise this attractive and growing market segment.
{"title":"Financial services and the African-American market: what every financial planner should know","authors":"D.Anthony Plath , Thomas H. Stevenson","doi":"10.1016/S1057-0810(01)00073-7","DOIUrl":"10.1016/S1057-0810(01)00073-7","url":null,"abstract":"<div><p>African-American consumers differ markedly from their Caucasian counterparts in terms of financial product preferences, product research, and investment asset portfolio composition. This study examines some of the principal differences between African-American and Caucasian households in evaluating and purchasing investment assets and explores differences in asset holdings between the two racial groups. This information can help financial planners seeking to market to the African-American community better understand this community, tailor investment information for the unique needs of this community, and render more effective service to individuals and families that comprise this attractive and growing market segment.</p></div>","PeriodicalId":100530,"journal":{"name":"Financial Services Review","volume":"9 4","pages":"Pages 343-359"},"PeriodicalIF":0.0,"publicationDate":"2001-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1016/S1057-0810(01)00073-7","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"83660850","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2001-12-01DOI: 10.1016/S1057-0810(01)00074-9
Gregory A Kuhlemeyer
The Equity Index Annuity (EIA) is a recent product development in the insurance industry. This paper details EIA design and interest crediting techniques, examines expected performance, and discusses possible regulatory concerns. Results indicate that the EIA is generally expected to perform better than a traditional fixed annuity for contract periods of at least five years, but is substantially below that of a similar direct equity purchase. EIA contracts are not appropriate for shorter-term investors when factors of risk and efficient markets are considered. The SEC is not currently regulating the EIA product, which should raise industry concern.
{"title":"The Equity Index Annuity: an examination of performance and regulatory concerns","authors":"Gregory A Kuhlemeyer","doi":"10.1016/S1057-0810(01)00074-9","DOIUrl":"10.1016/S1057-0810(01)00074-9","url":null,"abstract":"<div><p>The Equity Index Annuity (EIA) is a recent product development in the insurance industry. This paper details EIA design and interest crediting techniques, examines expected performance, and discusses possible regulatory concerns. Results indicate that the EIA is generally expected to perform better than a traditional fixed annuity for contract periods of at least five years, but is substantially below that of a similar direct equity purchase. EIA contracts are not appropriate for shorter-term investors when factors of risk and efficient markets are considered. The SEC is not currently regulating the EIA product, which should raise industry concern.</p></div>","PeriodicalId":100530,"journal":{"name":"Financial Services Review","volume":"9 4","pages":"Pages 327-342"},"PeriodicalIF":0.0,"publicationDate":"2001-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1016/S1057-0810(01)00074-9","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"84671375","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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