TY - JOUR
T1 - Conflicted financial advice
T2 - disclosure revisited
AU - Chen, Paul
AU - Richardson, Martin
N1 - Publisher Copyright:
© 2017 Informa UK Limited, trading as Taylor & Francis Group.
PY - 2018/7/12
Y1 - 2018/7/12
N2 - We examine the impact of disclosing an advisor’s conflict of interest in providing financial advice to a client in an experiment. We find that an advisor’s conflict of interest harms the client and that disclosing the conflict harms the advisor. Unlike earlier literature, we do not find that disclosure of the advisor’s conflict of interest results in moral licensing or strategic exaggeration behaviour by the advisor nor, relatedly, that disclosure disadvantages the client.
AB - We examine the impact of disclosing an advisor’s conflict of interest in providing financial advice to a client in an experiment. We find that an advisor’s conflict of interest harms the client and that disclosing the conflict harms the advisor. Unlike earlier literature, we do not find that disclosure of the advisor’s conflict of interest results in moral licensing or strategic exaggeration behaviour by the advisor nor, relatedly, that disclosure disadvantages the client.
KW - Conflict of interest
KW - disclosure
KW - experiment
KW - financial advice
UR - http://www.scopus.com/inward/record.url?scp=85028525979&partnerID=8YFLogxK
U2 - 10.1080/13504851.2017.1368984
DO - 10.1080/13504851.2017.1368984
M3 - Article
SN - 1350-4851
VL - 25
SP - 826
EP - 829
JO - Applied Economics Letters
JF - Applied Economics Letters
IS - 12
ER -