The Resource Financial planning and household portfolio performance : evidence from the 1998-2013 survey of consumer finances, by Shan Lei

Financial planning and household portfolio performance : evidence from the 1998-2013 survey of consumer finances, by Shan Lei

Label
Financial planning and household portfolio performance : evidence from the 1998-2013 survey of consumer finances
Title
Financial planning and household portfolio performance
Title remainder
evidence from the 1998-2013 survey of consumer finances
Statement of responsibility
by Shan Lei
Creator
Contributor
Author
Thesis advisor
Subject
Genre
Language
eng
Summary
This dissertation used datasets from the 1998, 2001, 2004, 2007, 2010 and 2013 Survey of Consumer Finances (SCF) to evaluate the effect of using financial planning services on households' portfolio performance. In this dissertation, portfolio performance was measured by portfolio Sharpe Ratio. The higher the Sharpe Ratio, the better the portfolio performance. Portfolio Sharpe Ratio was obtained based on rate of return, standard deviation, and asset weights. Asset's rate of return and standard deviation were calculated based on historical data, while each asset's weight in a portfolio was calculated using the data of assets' value in the SCF. In addition, as a dependent variable in the empirical model, Sharpe Ratio displayed a distribution, which departed significantly from normality. As a result the Sharpe Ratios were organized into quintiles (1=lowest and 5=highest) based on simulated values. In this dissertation, financial planning services were considered to be the professional services provided by lawyers, accountant and financial planners. After controlling other factors, the findings lend empirical support to the belief that financial planning services delivered by professional benefit households in higher possibility of reaching better portfolio performance, which was consistent with the descriptive analysis. This dissertation also provides insight into other determinants of portfolio performance. Results indicate that investment horizon positively affected portfolio performance. It was also found in this dissertation that compared to the respondents who were not willing to take any risk, the probability of achieving higher Sharpe Ratios was more likely for the respondents who were willing to take risks. Further analysis including interactions terms of using financial planning services and other sample characteristics showed statistically significant effect of using financial planning services on portfolio performance among different income groups, business owners and non-business owners and respondents with different investment horizons. Findings in this dissertation suggest that financial planning service professionals should devote more time and effort to helping those with a lower risk tolerance and a shorter investment horizon to construct portfolios that can achieve better portfolio performance. It is financial planning professionals' responsibility to not only understand their clients' financial situations, but also know their clients preferences and expectations. In addition, financial planning service professionals have a responsibility to educate their clients, to help them better understand themselves and to make better choices, which can maximize their utility. Future research needs to examine methods to evaluate other aspects of the value that the financial planning industry provides, such as adoption of tax strategies to enhance clients' financial well-being or methods to avoid behavioral biases or at least, reduce the effect of such biases
Cataloging source
MUU
http://library.link/vocab/creatorName
Lei, Shan
Degree
Ph. D.
Dissertation note
Thesis
Dissertation year
2015.
Government publication
government publication of a state province territory dependency etc
Granting institution
University of Missouri--Columbia
Index
no index present
Literary form
non fiction
Nature of contents
  • dictionaries
  • bibliography
  • theses
http://library.link/vocab/relatedWorkOrContributorName
Yao, Rui
http://library.link/vocab/subjectName
  • Financial planners
  • Finance, Personal
  • Households
  • Portfolio management
  • Risk-taking (Psychology)
Label
Financial planning and household portfolio performance : evidence from the 1998-2013 survey of consumer finances, by Shan Lei
Instantiates
Publication
Copyright
Note
  • "A dissertation presented to the Faculty of the Graduate School at the University of Missouri-Columbia In Partial Fulfillment of the Requirements for the Degree of Doctor of Philosophy."
  • Dissertation advisor: Rui Yao
  • Includes vita
Bibliography note
Includes bibliographical references (pages 138-148)
Carrier category
online resource
Carrier category code
  • cr
Carrier MARC source
rdacarrier
Content category
text
Content type code
  • txt
Content type MARC source
rdacontent
Control code
979562931
Extent
1 online resource (ix, 157 pages)
Form of item
online
Media category
computer
Media MARC source
rdamedia
Media type code
  • c
Specific material designation
remote
System control number
(OCoLC)979562931
Label
Financial planning and household portfolio performance : evidence from the 1998-2013 survey of consumer finances, by Shan Lei
Publication
Copyright
Note
  • "A dissertation presented to the Faculty of the Graduate School at the University of Missouri-Columbia In Partial Fulfillment of the Requirements for the Degree of Doctor of Philosophy."
  • Dissertation advisor: Rui Yao
  • Includes vita
Bibliography note
Includes bibliographical references (pages 138-148)
Carrier category
online resource
Carrier category code
  • cr
Carrier MARC source
rdacarrier
Content category
text
Content type code
  • txt
Content type MARC source
rdacontent
Control code
979562931
Extent
1 online resource (ix, 157 pages)
Form of item
online
Media category
computer
Media MARC source
rdamedia
Media type code
  • c
Specific material designation
remote
System control number
(OCoLC)979562931

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