A new research project entitled “New Evidence on the Role of Financial Advisors,” the work of Professor Nic Schaub (Professor of Household Finance at WHU – Otto Beisheim School of Management), Professor Stefan Ruenzi (Professor of Finance at the University of Mannheim), and Professor Markus Schmid (Professor of Finance at the University of St. Gallen) has received funding from the German Research Foundation (DFG) and the Swiss National Science Foundation (SNSF). The grant has a volume of around 500,000 euros, to be released over the course of the next three years.
Financial decisions are among the most important that households have to make, and many are reliant on the services of professional advisors. This new research project from Professor Nic Schaub and his colleagues will investigate the role played by financial advice in households’ financial decision-making. Can financial advisors help households better prepare for retirement? Can they help households survive times of crisis? How does the compensation model of financial advisors influence the quality of their recommendations?
Although financial advice plays an important role for households, numerous aspects of this service type have not yet been well researched and understood. Assessing the project, Professor Schaub stated, “I expect that the findings of our research project will be equally relevant for researchers, policymakers, financial service providers, and the broader population.”