Loading…
Welcome to the 2018 AFS Annual Meeting, being held this year, in conjunction with FPA in Chicago!

Sign up or log in to bookmark your favorites and sync them to your phone or calendar.

Monday, October 1
 

8:00am

Welcome from the AFS President!
Welcome from the AFS President

It is my pleasure to welcome you to the 2018 Academy of Financial Services Annual Meeting, the 33rd anniversary of the AFS. We gather at this annual meeting and conference each year due to our common interest in the teaching and practice of financial planning and financial services, as described in our mission statement:
  • To encourage basic and applied research in the area of personal financial planning and financial services
  • To encourage the development of the curricula in the financial services field at the university level
  • To encourage interaction between financial services professionals and academicians

This year, continuing the effort begun last year in Nashville, the AFS and the Financial Planning Association (FPA) have worked diligently to integrate our respective conferences into a single, cohesive event. The second day of the AFS conference (Wednesday, October 3) is the first day of the FPA conference. AFS and FPA registrants can attend both AFS and FPA sessions on that day. You will find many AFS and FPA members who have taken advantage of a significant discount to register and attend the complete AFS and FPA programs.

On AFS day one, we have a full slate of breakout sessions, beginning at 8am. We are excited to have as our luncheon speaker Ms. Christine Benz, Director of Personal Finance at Morningstar. Tuesday’s program ends with a reception and poster session from 4:30 to 6:00. On Wednesday morning, the second day of the AFS conference begins with the opening general session of the FPA Conference, entitled “The Future is Behavioral.” AFS breakouts start at 10:45 that morning and conclude at 5:45 that afternoon.

A conference does not just happen - it takes a great amount of planning and effort. I would like to take this opportunity to thank to Dr. Janine Scott, Executive VP-Program, for her efforts in constructing a very impressive agenda. Dr. Swarn Chatterjee, the AFS incoming President, was a tremendous asset in planning and executing the conference. Thanks also to Dr. Ginger Phillips and Jennifer Bijaczyk of Arden Solutions. Their support has been invaluable both for advance planning and “boots on the ground” here in Chicago. In addition, Dr. David Nanigian, VP-Communications, Dr. Chris Browning, VP-Marketing, Dr. Tom Langdon, VP-Finance, and Dr. Frank Laatsch, VP-Professional Associations, were helpful along the way.

Also thanks to Dr. Stuart Michelson, Editor of Financial Services Review, for his dedication to the journal. A special thank you to three long serving AFS board members who are stepping down at the conclusion of the conference. Dr. Frank Laatsch, a past president and current VP-Professional Associations, Dr. Sherman Hanna, VP-Membership, and director Dr. Martin Seay. We thank them for their many years of support and dedication.

Best wishes to all AFS attendees for an enjoyable and informative stay in Chicago.

Robert W. Moreschi, Ph.D.
AFS President 2016-2018



Monday October 1, 2018 8:00am - 11:59pm
N/A

4:00pm

Board Meeting & Dinner
AFS Officers and Directors ONLY

Monday October 1, 2018 4:00pm - 9:00pm
Morton's The Steakhouse - Michigan Room

6:30pm

 
Tuesday, October 2
 

6:59am

Registration
Tuesday October 2, 2018 6:59am - 5:00pm
Outside Michigan Rooms

7:00am

Breakfast
Tuesday October 2, 2018 7:00am - 8:00am
Michigan Common Area

8:00am

A1a - Do Equal-Weighted Index Funds Outperform Market Cap-Weighted Index Funds? [CFP Investments]
Investors have traditionally been advised to invest in market capitalization weighted index funds such as the S&P 500 index funds. However, recent literature suggests that investors may be better off choosing equal-weighted indexes for their portfolio investments. We investigate this issue empirically and find that, over the last twenty-seven years, the equal-weighted S&P 500 index has consistently outperformed the capitalization-weighted S&P 500 index over rolling 1-year, 3-year and 5-year periods, both in terms of cumulative returns and Sharpe ratios. We also find that an ETF that tracks the equal-weighted S&P 500 index has consistently yielded better risk-adjusted returns than the most popular ETF that tracks the cap-weighted S&P 500. These differences are driven by the firm size and book-to-market factors. However, when we study the smaller S&P MidCap 400 and the S&P SmallCap 600 indexes, we find that the equal-weighted indexes perform no better than the traditional cap-weighted indexes. Our results should be of interest to investors, financial advisors and practitioners.

Author(s): S. Gowri Shankar, James M. Miller

Presenters
avatar for Gowri Shankar

Gowri Shankar

University of Washington Bothell


Tuesday October 2, 2018 8:00am - 8:50am
Michigan 1A

8:00am

A1b - Risk and Reward of Fractionally-Leveraged ETFs in a Stock/Bond Portfolio [CFP Investments]
This article investigates 1.25X daily leveraged stock and bond exchange-traded funds (ETFs) as an alternative asset allocation for periodically rebalanced portfolios.  Performance is analyzed by replicating funds from 1989-2017.  Conditions for excess returns are derived analytically and confirmed empirically.  Simulations are conducted to evaluate portfolio performance to provide robust assessments under a variety of market conditions.  Results indicate a potential to amplify gains with a marginal reduction in Sharpe ratio. We conclude that for individual investors seeking additional returns from a stock/bond portfolio, the reduction of risk-adjusted return may be small enough to justify 1.25X leveraged ETFs over other alternatives with similar risk/reward profiles.

Author(s): James DiLellio

Presenters
avatar for James DiLellio

James DiLellio

Associate Professor, Pepperdine University


Tuesday October 2, 2018 8:00am - 8:50am
Michigan 1A

8:00am

A2a - How to Position a Retirement Investor’s Bond Portfolio in a Rising/Inverting Rate Environment (Work in progress)
The majority of the recessions in the last 50 years followed an inverted yield curve. We investigate the best strategy for a retirement investor’s allocation to fixed income when facing an upward sloping yield curve and a prospect of Fed hikes. We consider the cases of an investor holding individual 2-year and 10-year bonds, holding short and long bond funds, and holding corporate bond funds. We apportion the performance of each strategy to the duration, convexity and maturity effects of the capital gains plus the coupon cash flow. We find that the standard prescription to shorten the duration is often wrong, especially so in the last two cases of bond funds.

Author(s): Robert Dubil

Presenters
RD

Robert Dubil

Professor, University of Utah


Tuesday October 2, 2018 8:00am - 8:50am
Michigan 1B

8:00am

A2b - Post-Earnings-Announcement Drift: The Role of Investment Surprises
The paper first time examines the effect of investment surprises on post-earnings-announcement_x000D_
drift. Results show that investment surprises, which is a kind of non-earning concurrent_x000D_
information released at the same time with earnings announcement, have a negative effect on the_x000D_
post-earnings-announcement drift. Further various robustness checks confirm this relation. Our_x000D_
results are consistent with recent developments of the investment-based asset pricing model and_x000D_
support the argument that the post-earnings-announcement drift is due to the inaccuracy of_x000D_
underlying benchmark to capture the real risks.

Author(s): Aaron Lin

Presenters
AL

Aaron Lin

Western Connecticut State University


Tuesday October 2, 2018 8:00am - 8:50am
Michigan 1B

8:00am

A3a - Access to Finance for SMEs: Which Firms are Discouraged?
Using a representative survey-based dataset for Swiss SMEs, we analyze their access to finance. We model the credit allocation process for SMEs into a sequence of three steps and differentiate between “no-need”, “discouraged”,“denied” and "approved" firms. We set a specific focus on discouraged firms, those firms who reported a need for credit but did not apply for one, for reasons such as the fear of being turned down or the expectation of unfavorable interest rates and collateral requirements. Our results reveal that the group of discouraged borrowers is more similar to the denied borrowers than to the group of approved borrowers. Nevertheless, even with a conservative prediction, about 60 percent of the discouraged firms would have obtained a credit, if they applied for one. The self-rationing mechanism observed is thus rather inefficient and banks and policy makers should think about how to lower the group of discouraged borrowers.

Author(s): Andreas Dietrich, Reto Wernli

Presenters
AD

Andreas Dietrich

Professor for Banking, Lucerne University of Applied Sciences


Tuesday October 2, 2018 8:00am - 8:50am
Michigan 1C

8:00am

A3b - Diversity and Firm Performance
The modern American workplace is a microcosm of modern American society. The increasing diversity of the American workforce has made the increasing diversity of the American workplace a necessity. We explore the impact of diversity on firm performance. One way we measure a firm’s diversity is by using the Corporate Equality Index published by the Human Rights Campaign. We also use a firm’s inclusion in DiversityInc’s list of Top 50 Companies for Diversity, as well as discrimination lawsuit data from the Bloomberg BNA database. We expect that firms that have a better diversity reputation will outperform firms that do not.

Author(s): Makeen Huda, Jennifer Brodmann, M. Kabir Hassan

Presenters
MH

Makeen Huda

University of New Orleans


Tuesday October 2, 2018 8:00am - 8:50am
Michigan 1C

9:00am

B1a - Measuring Relative Risk Tolerance: A Cautionary Tale [CFP Risk Assessment]
Financial planners are increasingly being asked by regulators and practice standard boards to evaluate the relative risk tolerance of their clients. Two approaches dominate the evaluation process: economic and psychometric measures. This study was designed to answer the following questions: (a) what is the strength of association between economic and psychometric relative risk tolerance measures? (b) which assessment technique is statistically associated with financial planning proficiencies? and (c) which method of assessment provides a better description of financial planning behavior? Results suggest that while the two measurement approaches are positively correlated, the effect size of the association is modest. The key finding from the study is that only the psychometric approach was related to financial risk taking behaviors. Based on the findings, it was determined that the psychometric assessment approach may be better suited to evaluate situations in which uncertainty and subjective probabilities are the norm.

Author(s): John Grable, Narang Park

Presenters
avatar for John Grable

John Grable

Professor, University of Georgia
We provide leading-edge teaching, research and outreach that improves the economic well-being for families, increases the quality of life in communities and prepares future leaders and entrepreneurs.Our graduates are entrepreneurs, financial planners, consumer journalists, community... Read More →


Tuesday October 2, 2018 9:00am - 9:50am
Michigan 1A

9:00am

B1b - Profile to Portfolio - Where is the Missing Link? [CFP Risk Assessment]
Significant research has explored how we measure a client's tolerance for risk, and some research has evaluated how advisors combine various client behavioural and planning attributes to arrive at a "risk profile" for a client. From this stage advisors are then expected to be able to map to the product solutions or portfolios that they intend to recommend ensuring they are suitable. This stage requires that we have agreement on how we measure the risk related to these products and that there is an acceptable methodology to map this back to the profile of the client. A search of the literature as well as the practice illustrates there are many possible appoaches but little consensus because of the wide variety of risks: client expectations, magnitude and duration of drops, liquidity, leverage, guarantees, downside volatility. This paper looks at a cross section of approaches and proposes a rubric for evaluation.

Author(s): Shawn Brayman, Nicki Potts, Kira Brayman

Presenters
avatar for Shawn Brayman

Shawn Brayman

CEO, PlanPlus


Tuesday October 2, 2018 9:00am - 9:50am
Michigan 1A

9:00am

B2a - Perceived versus Actual Investor Sophistication; A Behavioral Study
This survey solicits information from individual investors on retirement and non-retirement account investments, actual level of investment sophistication, and self-perceived level of investment sophistication, along with many demographic variables. This study will investigate the relationship between actual and perceived investor sophistication to determine retirement preparedness of investors, as well as whether investors understand their level of financial preparedness. It is hypothesized that most investors are not as prepared for retirement nor as sophisticated investors as they believe. Additionally, it is hypothesized that there will be a difference in results related to age, education, and gender.

Author(s): Stuart Michelson and Sarah George

Presenters
avatar for Stuart Michelson

Stuart Michelson

Professor, Stetson University


Tuesday October 2, 2018 9:00am - 9:50am
Michigan 1B

9:00am

B2b - Do As I Tell You, Not As I Do
The purpose of our survey is to improve understanding of how financial planners/advisors make their own financial planning and investment decisions. One would expect professionals to lead by example. The survey focuses on the following areas of comprehensive financial planning: cash flow management, debt, retirement planning, investments and estate planning. Our main goal is to investigate if financial planners practice what their preach.  A secondary goal is to identify the characteristics associated with the advisers that best plan their own financial lives.

Author(s): Inga Chira, Krisine Beck, Hsin-Hui Chiu, Asamian Negin

Presenters
IC

Inga Chira

California State University-Northridge


Tuesday October 2, 2018 9:00am - 9:50am
Michigan 1B

9:00am

B3a - Do the Product Markets Matter? The Case of Innovation
This paper examines the effects of competitive threats on innovation at firm level. Using Hoberg, Phillips and Prabhala’s (2014) product market fluidity to capture competitive threats from rivals, we find that firms with high product market threats will invest more in R&D and generate higher number of patents and patent citations. In addition, that positive effect of competition on innovation is more pronounced for firms with smaller market shares or firms in more competitive industries. We also document that investing in more innovation helps competition-threatened firms increase their market power in the future. Overall, our results suggest that product market threats create incentives for firms to innovate to “escape” competitive pressure.

Author(s):  Lai Van Vo, Huong T.T. Le, Danh Vinh Le

Presenters
LV

Lai Van Vo

Assistant professor of Finance, Western Connecticut State University


Tuesday October 2, 2018 9:00am - 9:50am
Michigan 1C

9:00am

B3b - Trust and Financial Inclusion
This study examines the role of trust in financial inclusion around the world. Using financial inclusion measures from the Global Findex database and measure of trust from the World Values Survey, the study finds evidence that trust is important for explaining cross-country differences in account ownership and savings, the use of credit card, forms of borrowing, and the prevalence of mobile technology use in financial transactions. Specifically, trust encourages formal financing and the use of mobile technology; the relationship is also evident among wealthier economies. The trust-financial inclusion relation is robust to alternative specifications. When trust is instrumented by social diversity and religious measures, the 2SLS regression results confirm that the relationship is not driven by reverse causality. The findings confirm that trust could be an important determinant for access to formal financing.

Author(s):  Xiaoyan Xu

Presenters
XX

Xiaoyan Xu

Paul Larsen Consulting


Tuesday October 2, 2018 9:00am - 9:50am
Michigan 1C

10:00am

Break
Tuesday October 2, 2018 10:00am - 10:30am
Michigan Common Area

10:30am

C1a - The Effect of Behavior Problems on Unsecured Debt Use [CFP Risk Preference - Nature or Nurture]
This paper examines the effect of behavior problems on credit card debt and
student debt among young adults. The results show that behavior problems, in general, do
not predict credit card ownership, intensive credit card use, student loans, and high level
of indebtedness. Internalizing behavior problems are associated with a lower probability
of having carryover balances and a drop in unsecured debt. Behavior problems are linked
to a decrease in the probability of having student loans and a drop in the student loan
balance. The results also show that when families have unsecured debt, the likelihood
that their children as young adults use credit cards and the balance on these credit cards
are higher.

Author(s): Anca Traian

Presenters
AT

Anca Traian

Assistant Professor, East Tennessee State University


Tuesday October 2, 2018 10:30am - 11:20am
Michigan 1A

10:30am

C1b - The Effect of Genetics on Risk Preferences and Household Financial Decisions [CFP Risk Preference - Nature or Nurture]
This study investigates how genetics influence risk preferences and financial decisions. We expand on existing theoretical models to show that risk preferences that depend on genetic differences can explain non-expected utility maximizing behavior. We test these results using several waves of the Health and Retirement Study, which includes a rich set of information on households including biomarkers and genetic data for a large portion of the sample.  We measure risk preferences using established methodologies (see Kimball et al. 2008) and create an alternative measure of risk preferences that incorporates polygenic scores estimated from the raw genetic data.  We then estimate the effect of risk preferences using these alternative measures on risk-related household decisions such as insurance purchase decisions and retirement saving, and evaluate the relative contribution that risk preferences play in determining household financial well-being.

Author(s): Vickie Bajtelsmit, Lisa Posey

Presenters
avatar for Vickie Bajtelsmit, PhD

Vickie Bajtelsmit, PhD

Professor, Colorado State University


Tuesday October 2, 2018 10:30am - 11:20am
Michigan 1A

10:30am

C2a - More than 12b-1 Fees: The Impact of Method of Sales on Return Salience Through Brokerage Channel
Over the past four decades, there has been a dramatic change in how mutual funds are sold to investors. Before 1980, mutual funds had a single share class which was offered to all investors (Reid and Rea, 2003). This study follows Barber et al. (2015) identifying the impact of distribution channels on fund flow. We contribute by providing additional evidence that shows the variation of fund flows within different share classes and distribution channels. Our results show that distribution channels impact fund flow. Based on these results, we argue that it is critical to account for the method of sales when analyzing fund the relationship between fund flow and performance.

Author(s): Philip Gibson, Yuanshan "Jimmy" Cheng, Tao Guo

Presenters
PG

Philip Gibson

Assistant Professor of Finance, Winthrop University


Tuesday October 2, 2018 10:30am - 11:20am
Michigan 1B

10:30am

C2b - Relative Performance of Real Estate Exchange Traded Funds
This paper examines the performance of Real Estate Exchange Traded Funds (REETFs) over the period of time since their inception through September 2016. We construct equally-weighted portfolios monthly for comparison to the overall U.S. stock market as proxied by the Russell 3000 ETF (IWV).  Our results show that over the entire time period the REETF portfolios experienced higher monthly returns, but also had a slightly higher standard deviation of returns.  We also provide results controlling for risk differentials using the Sharp, Sortino, and Omega ratios.  The results show that REETFs portfolios had higher risk-adjusted performance using all of the various measures.

Author(s): Srinidhi Kanuri, Robert W. McLeod

Presenters
RM

Robert McLeod

University of Alabama


Tuesday October 2, 2018 10:30am - 11:20am
Michigan 1B

10:30am

C3a - Financial Literacy and Aging
This study investigates the hypothesis that financial literacy is affected by the overall natural cognitive decline with aging. The results of this research provide an empirical evidence supporting the hypothesis that suggests that financial literacy decline with aging using longitudinal data from Germany.

Author(s): Muna Alabed, Charlene Kalenkoski

Presenters
avatar for Muna Alabed

Muna Alabed

Research Assistant, PhD Candidate, Texas Tech University


Tuesday October 2, 2018 10:30am - 11:20am
Michigan 1C

10:30am

C3b - What Are the Determinants of Purchasing Long-Term-Care Insurance by Older Americans?
Although long-term care is a substantial risk that is threatening older Americans’ financial well-being, the demand for long-term-care insurance is not as strong as expected. The literature suggests that only 13 percent of the elderly above the age of 65 are insured against the possibility of going to a nursing home.  This study examines the determinants of long-term-care insurance purchases. It is found that the probability of leaving bequests is related positively to obtaining long-term-care insurance. However, the number of children is associated negatively with purchasing long-term-care insurance.

Author(s): Hossein Salehi, Charlene Kalenkoski

Presenters
avatar for Hossein Salehi

Hossein Salehi

Ph.D. student, Texas Tech University


Tuesday October 2, 2018 10:30am - 11:20am
Michigan 1C

11:30am

D1a - What Matters in ETF Selection? [CFP ETFs]
Explains Hougan (2014), low expenses are the main characteristic that investors look for when selecting an ETF. Challenging this common practice, Hougan develops a compelling theory that it is more important for investors to consider tracking difference, defined as the difference between the net-of-expense return on an ETF and the return on its benchmark index, when they go about selecting an ETF. Inspired by Hougan’s theory, this study examines the impact of both expenses and tracking difference on ETF performance. The relationship between expenses and performance is much stronger than the relationship between tracking difference and performance. This study shows that the slightly positive relationship between tracking difference and performance is attributable to the fact that funds with higher tracking difference tend to have lower expenses.

Author(s): David Nanigian

Presenters
avatar for David Nanigian, Ph.D., CFP(R)

David Nanigian, Ph.D., CFP(R)

Associate Professor of Finance, The Mihaylo College of Business and Economics at California State University, Fullerton
- ETFs- Active vs. Passive Investing- Opportunities for firms to invest in the future of the Mihaylo College's CFP Board-Registered Personal Financial Planning Program


Tuesday October 2, 2018 11:30am - 12:20pm
Michigan 1A

11:30am

D1b - Why Do People Invest in Overpriced ETFs, Can Behavioral Nudges Help? Results from a Nationally Representative Experiment [CFP ETFs]
Why does anyone invest in high-priced (over-priced?) index funds when there are low-cost alternates with indistinguishable performance, costing investors approximately $7 billion in unnecessary fees (Cooper et al. 2016)? Does a change in how fees are displayed nudge people away from investing in high-fee index funds and avoid wasting their money? Through a population-based survey experiment, we tested different cognitive mechanisms and heuristics to account for this enduring anomaly and different intervention strategies could potentially rectify it. Our preliminary results reject the hypotheses that when it comes to investing, (a) people are using price as a signal for quality; (b) people are price insensitive. Instead, our preliminary results reveal that many investors seemed to be relying on a naïve diversification heuristic to make investment choices. Changing how fees are displayed had negligible effect on behavior. With appropriate choice architecture policy, this unproductive transfer of wealth may be mitigated.

Author(s): Ray Sin, Ryan O. Murphy, Angela Fontes, Mark Lush

Presenters

Tuesday October 2, 2018 11:30am - 12:20pm
Michigan 1A

11:30am

D2a - Confidence, Overconfidence and Investor Decisions: Are You Your Own Worst Enemy?
Individuals have lower levels of financial knowledge than they did in prior years (NFCS 2015). However, despite the lower knowledge levels, individuals report higher confidence in their knowledge. This gap, between perceived knowledge and actual knowledge, is overconfidence. Overconfidence refers to an individual’s propensity to overestimate the accuracy of his or her estimates, resulting in narrow confidence intervals, an overestimation of precision, and an underestimation of risk. Using FINRA's 2015 National Financial Capability Investor Survey, this analysis explores how overconfidence is related to investor characteristics and decisions. Is too much confidence in your investing knowledge harmful to your investment performance?

Author(s): Colleen Tokar Asaad

Presenters
CT

Colleen Tokar Asaad

Assistant Professor of Finance, Baldwin Wallace University


Tuesday October 2, 2018 11:30am - 12:20pm
Michigan 1B

11:30am

D2b - Peer Effects, Personal Characteristics and Asset Allocation
We study the relative importance of social factors (including household, workplace, and neighborhood peer effects) and personal characteristics (including age, gender, tax rates, and funds under management) for asset allocation decisions. The most important factors (in order) are household peer effects, personal characteristics and workplace peer effects. Neighborhood peer effects and financial advice play a less important role. We use instrumental variables for both household and workplace peer effects and find results that are consistent with causal peer effects.

Author(s): Jasmine Fang, Annie Zhang, Ben Jacobsen, Ben Marshall

Presenters
JF

Jasmine Fang

Massey University


Tuesday October 2, 2018 11:30am - 12:20pm
Michigan 1B

11:30am

D3a - Disability Type, Financial Capability, and Risky Asset Holding
Adults with disabilities are less wealthy and less financially capable than other adults in the U.S. but some of them still have potential for seeking long term financial planning services. The purpose of this study is to examine whether disability type and financial capability are associated with risky asset holding of adults with disabilities. Using data from the 2015 National Financial Capability Study, we find that adults with different types of disabilities have different chances of holding risky assets. Results of a bivariate logistical model show that, compared to people who are deaf, people who are blind or have difficulties in dressing and bathing are more likely, while people who have serious difficulty concentrating or  a work disability are less likely, to hold risky assets. After controlling for  other variables in the logistical model, people with work disability are still less likely to hold risky financial assets than the deaf.

Author(s): Jing Jian Xiao, Barbara O'Neill

Presenters
avatar for Jing Jian Xiao

Jing Jian Xiao

Professor and JFCP Editor, University of Rhode Island
Dr. Jing Jian Xiao is a consumer economics professor at University of Rhode Island. He is also the editor of Journal of Financial Counseling and Planning and the co-guest editor for the special issue on “Consumer Wellbeing in Asia” of Journal of Consumer Affairs.


Tuesday October 2, 2018 11:30am - 12:20pm
Michigan 1C

11:30am

D3b - CANCELLED - The Affordable Care Act (Obamacare): Did it Really Accomplish What it Intended?
It is widely accepted that financial planning for retirement is deemed wise and essential to maintain an equally sound financial quality of life post-career.  However, changes in public policy (specifically, the implementation of the Affordable Care Act (Obamacare)) can subject individual plans to unintended consequences.  This paper posits that an individual who has a financial advisor is less likely to have seen an increase in out of pocket expenses (including deductibles and premiums) after the implementation of the Affordable Care Act.  Such findings are confirmed by means of a robust survey study encompassing a representative sample.

Author(s): W. Lance Hocutt

Presenters
avatar for William Lance Hocutt

William Lance Hocutt

President and Founder, Lance Hocutt Financial Group
20 year practitioner and current Ph.D. Student at Texas Tech University


Tuesday October 2, 2018 11:30am - 12:20pm
Michigan 1C

12:30pm

Keynote Presentation, Business Meeting, and Luncheon
Luncheon including Awards for Best Papers, Annual Business Meeting, and keynote presentation from Christine Benz, Director of Personal Finance at Morningstar.

Presenters
avatar for Christine Benz

Christine Benz

Director of Personal Finance, Morningstar
Christine holds a bachelor's degree in Political Science and Russian/East European studies from the University of Illinois at Urbana-Champaign. Since 1993, Christine has been an integral part of Morningstar's effort to create and dispense quality financial investment information to... Read More →
avatar for Swarn Chatterjee

Swarn Chatterjee

Associate Professor, University of Georgia
avatar for Robert Moreschi

Robert Moreschi

AFS President, Dean of the Faculty at VMI, Virginia Military Institute
Col. Robert “Bob” Moreschi, a 16-year veteran of the VMI faculty and chair of the Department of Economics and Business since 2013, has been chosen to succeed Brig. Gen. Jeffrey Smith Jr. ’79 as deputy superintendent for academics and dean of the faculty. He is now VMI’s 11th... Read More →
avatar for Janine Scott

Janine Scott

AFS Conference Chair, Assistant Professor, Shepherd University
As an early career researcher and academic, I am engaged with current financial planning issues that are relevant and applicable to both consumers and financial planning practitioners. I oversee the Financial Planning program at Shepherd University, and I am currently teaching Risk... Read More →


Tuesday October 2, 2018 12:30pm - 2:20pm
Crystal Ballroom C - West Tower, Lobby Level

2:30pm

E1a - Risky Retirement: The Impact of Retirement on Physical Health [CFP End-of-Life Issues]
Research into the impact of poor health on retirement is popular but only recently have researchers began to flip the question to estiamte the effects of retirement on physical health. This study takes a closer look at the implications of early retirement to determine the long-term repercussions of early retirement.

Author(s): Christopher Crouch, Charlene Kalenkoski

Presenters
CE

Christopher Edwin Crouch

Texas Tech University


Tuesday October 2, 2018 2:30pm - 3:20pm
Michigan 1A

2:30pm

E1b - The Importance of Planning Horizon in End-of-Life Financial and Health Planning [CFP End-of-Life Issues]
This study uses the 2014 Health and Retirement Study (HRS) to examine the predictors of End of Life (EOL) planning among adults age 50 and over and the integration between end of life (EOL) financial and EOL health planning, and the association of financial planning time horizon with EOL financial and EOL health planning documents. The results indicate that both financial and health end-of-life documents were more common among those with greater wealth and more educated individuals. The financial planning time horizon affected the EOL financial planning, but not EOL health planning. This suggests that the financial planning horizon measurement may be limited to financial behaviors, rather than broadly predictive of long-term planning behaviors in other domains.

Author(s): Reem Hussein, Russell James, III

Presenters
RH

Reem Hussein

PhD Student, Texas Tech University


Tuesday October 2, 2018 2:30pm - 3:20pm
Michigan 1A

2:30pm

E2a - Testing a Pecking Order Model of Household Capital Structure
This study tests an adaptation of the Pecking Order theory of captial structure to the household. The sample data used for this study are extracted from the Health and Retirement Study (HRS). Following the general methods common in the corporate finance literature, the household funding deficit is constructed and a fixed effects model of the change in debt is tested. Implications for future research and practice are discussed.

Author(s): David Allen Ammerman

Presenters
avatar for David Allen Ammerman

David Allen Ammerman

Assistant Professor of Finance, West Texas A&M University


Tuesday October 2, 2018 2:30pm - 3:20pm
Michigan 1B

2:30pm

E2b - Two-Factor Risk Preference and Credit Card Risk
This paper extends on previous research into the effects of financial self-efficacy (FSE) and risk tolerance on the financial satisfaction of credit-card users by integrating both of these measures of risk preferences.  We find that FSE and risk tolerance are similar in that they both predict risk preferences, however they differ in how they operate.  This suggests that planners using both a risk tolerance assessment and an FSE can better anticipate thir clients risk preferences and reactions than those who use a risk tolerance assessment alone.

Author(s): Patrick Payne, Sarah Asebedo

Presenters
PP

Patrick Payne

Assistant Professor of Finance, Western Carolina University


Tuesday October 2, 2018 2:30pm - 3:20pm
Michigan 1B

2:30pm

E3a - Can Behavioral Nudges Help Overcome Thinking Blind-Spots on Investment Goals?: Results from Two Studies
There are two key components when it comes to effective financial planning: (a) identifying the investment goals that are important to investors; and (b) prioritizing those investment goals. However, when it comes to the first component – identifying investment goals that matter – many people, when left up to their own devices, fail to identify half of the objectives that they later recognize to be important. It’s as if people don’t know what is most important to themselves. For the second component, prioritizing investing goals, the inability to do so effectively may lead to misallocations (e.g., overweighing short-term goals over long term ones) which may adversely impact an investor’s financial well-being. However, there is no consensus in the literature on how to help investors prioritize multiple goals effectively. In two studies, we apply and test the effectiveness of behavioral techniques to improve these two components of financial planning.

Author(s): Ray Sin, Ryan O. Murphy, Samantha Lamas, Susan Sullivan

Presenters
RS

Ray Sin

Behavioral Scientist, Morningstar, Inc


Tuesday October 2, 2018 2:30pm - 3:20pm
Michigan 1C

2:30pm

E3b - Variance in Client’s EEG Responses When Using Different Communication Methods: Ways to Ask Questions to Obtain More Accurate Answers
This study utilizes neuro-technology to measure the clients’ psychophysiological status by comparing two types of communication methods, written communication and verbal communication. Specifically, the electroencephalography (EEG) measures clients’ responses to each communication method. In other words, this study will investigate how clients react to two types of communications by employing quantitative EEG signal analysis. The results of this study will have implications for the methods used to obtain sensitive information from clients. The results of this study have important implications for financial planners and advisors, suggesting that professionals should be more careful when asking clients sensitive questions. The written communication contained more questions, and the questions were more sensitive and complicated than those given in the oral communication. Further analysis with brain waves (alpha, beta, theta, and gamma) will come if the study is accepted to AFS conference.

Author(s): Wookjae Heo, Ann-Marie Junker, Youngdeok Lee

Presenters
avatar for Wookjae Heo

Wookjae Heo

Assistant Professor, South Dakota State University


Tuesday October 2, 2018 2:30pm - 3:20pm
Michigan 1C

3:30pm

F1a - Charitable Estate Planning Among Donors to Different Types of Charities [CFP Estate Planning]
This study explores whether lifetime donors to different types of charities have varying charitable bequest attitudes. Previous research tells us that bequests are important for charities, and potentially a largely untapped resource for charities, given the disproportionate amount of lifetime donors compared to bequest donors. This paper hypothesizes that among donors to high personal benefit causes, such as those creating shared goods benefiting the donor, interest in a charitable bequest (which offers no opportunity for receiving such benefits) will be relatively less than among donors to low personal benefit causes, except that religious causes are high benefit but donors will express higher interest in charitable estate giving. In order to explore this, each charitable type is categorized as “high personal benefit,” “mixed personal benefit,” and “low personal benefit.”

Author(s): Jennifer Lehman, Russell James

Presenters
avatar for Jennifer Lehman

Jennifer Lehman

Visiting Asst Professor, University of Utah
I received my PhD in personal financial planning at Texas Tech University and am currently enjoying my one year appointment at the University of Utah. Current research is on diversity issues in charitable planning. I have JD and MPA degrees from UNC-Chapel Hill. I love road trips... Read More →


Tuesday October 2, 2018 3:30pm - 4:20pm
Michigan 1A

3:30pm

F1b - Finding the Next Major Donor: The Relationship between Financial Planning Horizon and Charitable Giving [CFP Estate Planning]
Previous research has studied the characteristics associated with the presence and amount of charitable giving. However, few of these studies have explored the relationship between financial planning horizon and philanthropic donations, especially large donations. Using cross-sectional and longitudinal analysis of the Health and Retirement Study data, this paper explores the factors associated with charitable giving over time with a particular focus on identifying the characteristics that predict major donors.  Although practitioners can typically expect future giving to be predicted by past donations, it is important to be able to identify factors indicating the likelihood of an unusually large gift. The study of this paper concludes that American adults who have longer financial planning horizon are more likely to make charitable donations, ceteris paribus. Among donors whose giving exceeds small “social compliance” gifts, major gifts are usually predicted by long-term financial planning horizon, wealth, religious activity frequency, volunteer experience and education.

Author(s): Zhikun Liu, Russell James, III

Presenters
avatar for Zhikun Liu

Zhikun Liu

Research Director, Empower™


Tuesday October 2, 2018 3:30pm - 4:20pm
Michigan 1A

3:30pm

F2a - Constructing Tax Efficient Withdrawal Strategies for Retirees with Traditional 401(k)/IRAs, Roth 401(k)/IRAs, and Taxable Accounts
We construct an algorithm for United States retirees that computes individualized tax efficient annual withdrawals from IRAs/401(k)s, Roth IRAs/Roth 401(k)s, and taxable accounts. Our algorithm applies a new approach that generates an individualized strategy that results in consistent improvements over non-individualized withdrawal strategies currently advocated by financial institutions and academics. Among other results, we quantiably demonstrate why retirees should avoid, not seek, dividend producing stocks in their taxable accounts. Our model, which can work to optimize either portfolio longevity or the bequest to an heir, accommodates many salient tax code features, including dividends, different taxable lots, conversions, and required minimum distributions.

Author(s): James DiLellio, Daniel Ostrov

Presenters
avatar for James DiLellio

James DiLellio

Associate Professor, Pepperdine University


Tuesday October 2, 2018 3:30pm - 4:20pm
Michigan 1B

3:30pm

F3a - The Role of Materialism in Perceiving Financial Stress
According to the American Psychological Association (2015), nearly three in four Americans recently experienced or currently are experiencing stress about money management issues. Considering money and finance continuously have ranked as the top stressor among the Americans over the past years, it seems quite robust that money closely relates to individuals’ mental health. One of lesser known pieces of financial stress is how it is formed. Paying attention to this path is important because people perceive stress differently even in the same stressful situation. Park, Heo, Ruiz-Menjivar and Grable (2017) found external factors (i.e., social support) could relieve the negative impact of the stressor. However, little has been known about internal factors that are influential. Focusing on materialism, this study aims to identify the role of the personal internal state in shaping financial stress. The results showed that individuals with higher materialistic values perceive higher levels of stress.

Author(s): Narang Park, John E. Grable

Presenters
NP

Narang Park

PhD Candidate, University of Georgia


Tuesday October 2, 2018 3:30pm - 4:20pm
Michigan 1C

3:30pm

F3b - The Effect of Alimony on Savings Behavior
Alimony, or spousal support is a transfer payment from one divorced spouse to another. Ostensibly, this is to assist in meeting the needs of a dependent spouse during post-divorce life. In general, dependent spouses who receive alimony should have more of an ability to save than those dependent spouses not receiving alimony. Conversely, those paying support may be less likely to save than those supporting spouses not paying support. Using data from the Survey of Consumer Finances, the present research examines whether the presence of alimony is associated with an increased likelihood to save, and whether those paying alimony is associated with a decreased likelihood to save. Results suggest receiving alimony reduces propensity to save, and paying alimony has no effect.

Author(s): Michael Kothakota, Stuart Heckman

Presenters
MK

Michael Kothakota

Student, Kansas State University


Tuesday October 2, 2018 3:30pm - 4:20pm
Michigan 1C

4:29pm

P100 Poster Session and Reception
Hosted by Wiley

Tuesday October 2, 2018 4:29pm - 6:00pm
Michigan 2

4:30pm

P101 - Access to Financial Education in High School and Its Effect on an Individual’s Preferences towards Debt at the Time of a Home Purchase.
Data from the 2015 National Financial Capability Study and The Federal Reserve Bank of St. Louis are merged and analyzed to estimate the effect that access to financial education in high school has on the percentage of funds that are borrowed to acquire a home. A multivariate regression equation is estimates the relationship. The results suggest that those with access to financial education in high school borrow less, all else equal, when compared to those without access to financial education.

Author(s): Leobardo Diosdado, Charlene Kalenkoski, Donald Lacombe

Presenters
LD

Leobardo Diosdado

Texas Tech University


Tuesday October 2, 2018 4:30pm - 6:00pm
Michigan 2

4:30pm

P102 - Do Sources of Financial Education Affect Financial Knowledge and Financial Confidence?
This study uses 2015 National Financial Capability Study to examine the effects of different sources of financial education on individuals’ financial knowledge and financial confidence. The sources examined include parental and family financial influence, financial education learned from high school and college courses, workplace financial education programs, and combinations of these sources. Results showed that financial education can increase financial knowledge and financial confidence. Generally, those who obtained financial education from all three sources were more likely to be highly knowledgeable about financial matters and highly confident toward their financial capability. Four financial knowledge-financial confidence groups were established to further examine the effects of financial education sources and demographic and socioeconomic characteristics. Findings of this study can reinforce the significance of financial education and shed a light on the development and evaluation of financial education programs for policy makers and financial educators.

Author(s): Lu Fan, Lini Zhang

Presenters
LF

Lu Fan

Assistant Professor, University of Missouri


Tuesday October 2, 2018 4:30pm - 6:00pm
Michigan 2

4:30pm

P103 - The Association between Expectations of Public Transfers and Individual Consumption Decisions: Findings from a Panel Study
This study examines the association between peoples' current period consumption decisions and their expectations of receiving public transfers in the future. Using the 3 most recent waves of a panel data of elderly respondents 50 years or older, this study finds that expectations of receiving public transfers in the future was positively associated with peoples' current consumption decisions after controlling for a number of socioeconomic and demographic related variables. The findings have immediate policy relevance and provides insight into the financial decision making process of households expecting future public transfers.

Author(s): Young Joo Choung, Swarn Chatterjee

Presenters
avatar for Swarn Chatterjee

Swarn Chatterjee

Associate Professor, University of Georgia


Tuesday October 2, 2018 4:30pm - 6:00pm
Michigan 2

4:30pm

P104 - Professional Judgement or Just Another Opinion?
How do professional advisors make trade-offs between conflicting attributes of a client when determining a suitable or "best interest" profile for them? Risk tolerance, risk capacity, loss aversion, composure, knowledge, experience, time horizon, need, liquidity and more may play a role. Initial research found a startling lack of consistency between professional advisors as to what factors are important and how they behave relative to each other. Only time horizon for investing is universally recognized but even then a wide variance in opinion leads to very different assessments of its impact for clients. This paper utilizes a combination of two methods of inquiry, surveys of advisors using binary decisions to try and determine if any consistency or consensus exists, and secondly, in depth interviews of 8 "recognized experts" in the field. The outcome is to document any common heuristics that advisor should consider as a best practice.

Author(s): Shawn Brayman

Presenters
avatar for Shawn Brayman

Shawn Brayman

CEO, PlanPlus


Tuesday October 2, 2018 4:30pm - 6:00pm
Michigan 2

4:30pm

P105 - Risk Tolerance Profile of Cash Value Life Insurance Owners
Life insurance, a risk management tool, generally provides ways to protect against the financial loss due to an individual’s death. This study investigates the risk tolerance profile of cash value life insurance owners and attempts to investigate the association between life insurance ownership and subjective attitude toward different domains of risk by comparing with two logistic models. Inconsistencies exist with risk tolerance in different domains; specifically, life insurance owners are risk averse, in general, but they are risk takers in other domains.

Author(s): Zheying Yao, Dalisha D. Herring, Abed G. Rabbani

Presenters
ZY

Zheying Yao

PhD Student, University of Missouri - Columbia


Tuesday October 2, 2018 4:30pm - 6:00pm
Michigan 2

4:30pm

P106 - Signaling Effect of Socially Conscious Mandate of Mutual Funds
The purpose of this paper is to investigate whether having a socially conscious mandate sacrifices financial performance of a mutual fund, as compared to mutual funds that have a comparable average ESG score even without having a responsibility or sustainability mandate. Previous studies have shown that having an intentional socially conscious mandate can limit the investment choices for the mutual funds. This study uses the data of all mutual funds domiciled in the United State that have been assessed by Morningstar® with ESG scores. We study if the risk-adjusted performance with a socially conscious mandate is statistically different from other ESG-rated funds. The second part of the paper investigates whether the differential flow of mutual funds with a socially conscious mandate is statistically different from funds that do not have a socially conscious mandate.

Author(s): Aman Sunder, Jennifer Coombs, Nandita Das, Bernadette Ruf, Dakota Moran

Presenters
avatar for Aman Sunder

Aman Sunder

Program Chair, College for Financial Planning



Tuesday October 2, 2018 4:30pm - 6:00pm
Michigan 2

4:30pm

P107 - The Effects of Tax Incentives on Educational, Religious, and Political Charitable Giving
The academic, tax, and financial planning communities have become more interested in how individual tax deductions, exemptions, and credits—in other words, tax incentives— affect charitable contributions, due to some major changes in tax policies.  People respond differently to these changes based on their personal preferences towards various charitable causes, as well as their budget constraints and levels of financial literacy. To address this, the current study examines tax effects on educational, political, and religious charitable contributions using nationally representative, cross-sectional data (2012-2017) from the Consumer Expenditure Survey (CEX).

Author(s): Dava Dorjsuren

Presenters
DD

Dava Dorjsuren

Instructor/PhD Student, Texas Tech University


Tuesday October 2, 2018 4:30pm - 6:00pm
Michigan 2

4:30pm

P108 - The Impact of Mortality Salience on Asset Decumulation Decision
Recent research has identified that mortality salience has significant impacts on annuity purchase decisions, including the decision to avoid purchasing annuities and the decision to purchase annuities with a bequest provision.  This study investigates whether mortality salience will also influence the broader issue of an individual’s asset decumulation decision in retirement.  Theoretical models from psychology and economics suggest that it will. Using a randomly assigned experimental test, we find that increasing mortality salience increases the desire to retain assets in retirement, reducing the preferred spending rates in retirement.  Understanding the role of mortality salience on decisions about asset decumulation in retirement can be beneficial to academic researchers and financial planners.

Author(s): Yi Liu, Russell N. James, III

Presenters
avatar for Yi (Bessie) Liu

Yi (Bessie) Liu

Ph.D Student, Texas Tech University
Yi (Bessie) Liu is a Ph.D. student in the Department of Personal Financial Planning at Texas Tech University. She aims to serve diversified groups especially for first and second generation immigrants as well as Asian-Americans to assist them in achieving a better financial futur... Read More →


Tuesday October 2, 2018 4:30pm - 6:00pm
Michigan 2

4:30pm

P109 - Time Will Tell: Determinants and Significance of Financial Planning Horizon Changes
Recent studies have demonstrated that individuals' financial planning horizons significantly impact their economic decisions, such as saving propensities, credit card usage behaviors, investment choices, retirement decisions as well as estate planning engagements. Motivated by the profound implications and impacts of people's financial planning horizon variations, this paper investigates the determinants of individuals' financial planning horizons both cross-sectionally and longitudinally. Using the Health and Retirement Study data, the analyses in this paper reveal that American adults' financial planning horizons are strongly determined by their self-perceived life expectancy. Over time, the changes in self-perceived life expectancy, marital and retirement status, health conditions and wealth level will cause individuals shift their financial planning horizons. The insight gained in this study helps financial planners to better understand the factors driving the changes of their clients' financial planning horizons and how to encourage them to expand their planning horizon.

Author(s): Zhikun Liu, Russell James, III

Presenters
avatar for Zhikun Liu

Zhikun Liu

Research Director, Empower™


Tuesday October 2, 2018 4:30pm - 6:00pm
Michigan 2

6:00pm

AFS Program Directors Meeting
This is a meeting of those programs that offer CFP®  programs. Everyone is welcome. 

Tuesday October 2, 2018 6:00pm - 7:30pm
Michigan 1B
 
Wednesday, October 3
 

6:59am

Registration
Wednesday October 3, 2018 6:59am - 6:00pm
Outside Michigan Rooms

7:00am

FPA® Ethics [CFP CE]
Contact FPA® for more information.

Wednesday October 3, 2018 7:00am - 8:45am
Columbus A-F

8:00am

FPA® First Time Attendee Orientation
FPA®

Wednesday October 3, 2018 8:00am - 8:45am
Grand Ballroom F

8:00am

FPA® New Planner Breakfast
FPA®

Event is by invitation only.

Wednesday October 3, 2018 8:00am - 8:45am
Comiskey

9:00am

FPA® General Session: The Future is Behavioral [CFP CE]
FPA®

CFP® CE


Wednesday October 3, 2018 9:00am - 10:30am
Grand Ballroom A-D

10:30am

Coffee Break
Wednesday October 3, 2018 10:30am - 10:45am
TBA

10:45am

FPA® Academic Research Presentations (JFP/AFS), Part 1 [CFP CE]
FPA®

CFP® CE

Wednesday October 3, 2018 10:45am - 11:45am
Michigan 3

10:45am

FPA® Behavioral Finance Panel [CFP CE]
FPA®

CFP® CE

Wednesday October 3, 2018 10:45am - 11:45am
Columbus A-F

10:45am

FPA® Best Practices for Retirement Income [CFP CE]
FPA®

Wednesday October 3, 2018 10:45am - 11:45am
Grand Ballroom F

10:45am

FPA® Cross-Border Estate Planning [CFP CE]
FPA®

Wednesday October 3, 2018 10:45am - 11:45am
Columbus K-L

10:45am

10:45am

FPA® International & Cross-Border Knowledge Circle
FPA®

Wednesday October 3, 2018 10:45am - 11:45am
Roosevelt 1AB

10:45am

10:45am

G1a - Age Differences in Risk Tolerance and Risk Domains
This essay investigates the hypothesis that individuals typically become less risk tolerant as they grow older. More specifically, it investigates individuals’ personal perceptions of their own risk attitudes with respect to different risk domains, these are health, money, career, safety, and leisure domains. The study uses data on the degree of risk tolerance with respect to these five different domains, in addition to individuals’ financial portfolio risk to investigate whether decline in risk tolerance is associated with aging and whether this hypothesis is true regardless of the risk-specific domain. The analysis uses longitudinal data from the Germany.

Author(s): Muna Alabed, Charlene Kalenkoski

Presenters
avatar for Muna Alabed

Muna Alabed

Research Assistant, PhD Candidate, Texas Tech University


Wednesday October 3, 2018 10:45am - 11:45am
Michigan 1A

10:45am

G1b - Financial Self-Assessment and Households’ Well-Being in an Emerging Market
This study investigates the financial self-assessment and households’ well-being using a national survey of 2,567 households in Turkey. We use households’ views on their ability to meet current living expenses in the short-term as well as their assessment for the retirement in the long-term. We also investigate how the sources of income are related to the financial well-being. Findings show that households’ daily concerns including the inability to meet short-term expenses including health care, daily living expenses (food and utilities), and the inability to maintain the existing living standard are highly significant factors in explaining their financial assessment. We also find that having enough income during the retirement and ability to find a job in the future when needed are positively related to financial well-being. Finally, when households’ income is from work, rental properties, family, and pension, they feel financially more secure.

Author(s): Halil Kiymaz, Belma Ozturkkal

Presenters
avatar for Halil Kiymaz

Halil Kiymaz

Bank of America Professor of Finance, Rollins College


Wednesday October 3, 2018 10:45am - 11:45am
Michigan 1A

10:45am

G2a - Cost Efficiencies in the Management of Commodity Mutual Funds
We examine determinants of cost efficiencies in the U.S. commodity mutual fund industry for the period 2001 to 2016. Empirical results show that cost increases in the U.S. commodity mutual fund industry have been less than proportional to increases in fund assets, pointing to economies of scale for the industry. Average cost elasticity varies by fund size, existence of 12b-1 fees, load versus no-load funds, and institutional versus retail funds. Funds without a 12b-1 plan show larger economies of scale than funds with a 12b-1 plan. Institutional funds show greater economies of scale than retail funds since 2010.

Author(s): Tim Mooney, D.K. Malhotra, Raymond Poteau

Presenters
TM

Tim Mooney

Assistant Professor of Finance, Thomas Jefferson University


Wednesday October 3, 2018 10:45am - 11:45am
Michigan 1B

10:45am

G2b - CANCELLED - The Willingness of Allocating Funds to Longevity Income: A Comparison by Age.
An increase in the expected longevity of older Americans increases their risk of outliving their assets. Previous research examines the characteristics of individuals who tend to have a demand for immediate annuities. However, few studies look at deferred income annuities (aka longevity income). This paper first uses a probit regression to examine the age groups that are willing to allocate a positive amount to the purchase of longevity income. From amongst the individuals who are willing to allocate a positive amount, it then uses an ordered probit regression to examine the quintiles in which individuals among the different age ranges are willing to allocate their funds. The results show that, individuals who have a higher demand for the purchase of longevity income and not necessarily the ones who are willing to allocate the most funds to it. These results could be of interest to financial planners and other related practitioners.

Author(s): Zunaira Khalid, Michael A. Guillemette, Christopher M. Browning

Presenters
ZK

Zunaira Khalid

Graduate Student, Texas Tech University


Wednesday October 3, 2018 10:45am - 11:45am
Michigan 1B

10:45am

G2b - Practical Strategies to Enhance Retirement Success Rates in the United States (Base Model)
This study examines the effect of various retirement strategies on the success rates for the U.S. retiree population, assuming potential survival to age 119. The essential study method simulates (a) retirement withdrawal with or without retirement strategies from various households’ assets, and (b) by age 119 if there are any assets remaining. The U.S. Census Bureau’s 2008 Survey of Income and Program Participation Waves 8, 9, 10 and 11, or calendar year 2011, represent the U.S. population. The study compares the success rates by demographic characteristics and socioeconomic cohort groups.

Author(s): Chia-Li Chien

Presenters
avatar for Chia-Li Chien, CFP®, PhD candidate

Chia-Li Chien, CFP®, PhD candidate

Director of Financial Planning Program, California Lutheran University/Value Growth Institute
Chia-Li Chien, PhD candidate, CFP®, PMP®; Chia-Li “like JOLLY,” Succession Strategist of Value Growth Institute, dedicated to helping private business owners increase their company equity value. She is the award-winning author of the books Show Me The Money and Work toward Reward... Read More →


Wednesday October 3, 2018 10:45am - 11:45am
Michigan 1B

10:45am

G3a - Are ‘Adult’ Sources of Windfalls Destined to be Spent ‘Responsibly’? (And Are Other Windfalls Spent Hedonistically?)
The goal of this paper is to test to see whether what people would buy differs by windfall source. Basically, our hypothesis is that the more ‘adult’ the source of the windfall, such as a work bonus, tax refund and perhaps inheritance, the more one would spend on ‘responsible’ uses, like household expenses and durable goods, such as a car or washing machine. Alternatively, the more hedonistic sources, like lottery and game show winnings, would be spent on ‘fun’. An alternative measure explored would be ‘euphoria’. Are the more exciting or euphoric sources like game show, bonus or lottery, spent more for fun than the less exciting sources like a tax refund or inheritance?

Author(s): Eugene Bland, Valrie Chambers

Presenters
EB

Eugene Bland

Texas A&M University - Corpus Christi


Wednesday October 3, 2018 10:45am - 11:45am
Michigan 1C

10:45am

G3b - Gender Bias and the Selection of a Financial Advisor
This study investigates whether the presence of same-gender bias exists when investors select a financial advisor. Through an online survey, approximately half of the sample was asked to consider two advisors, a financial planner who was male and an investment advisor who was female. The other half of the sample were asked to consider the same advisor profiles, only the financial planner was female and the investment advisor was male. The results showed no evidence of same-gender bias, however, females displayed a strong preference for a financial planner, regardless of the advisor’s gender. To try and understand why females preferred financial planners, we found evidence that males and females associate different attributes with financial planners and investment advisors. Specifically, females associate collaborative and easy to talk to/good listener with a financial planner. We also found evidence that investors who value these “soft skills” are more likely to hire a financial planner than an investment advisor.

Author(s): Matthew Sommer, HanNa Lim, Maurice MacDonald

Presenters
MS

Matthew Sommer

Kansas State University


Wednesday October 3, 2018 10:45am - 11:45am
Michigan 1C

10:45am

G4a - The Determinants of Objective and Subjective Emergency Fund Adequacy
Analyses of the 2016 Survey of Consumer Finances (SCF) dataset found that 27% of households had quick (stable liquid) financial assets sufficient to cover 3 months or more of spending, 33% had comprehensive financial assets (all except in retirement accounts) sufficient to cover 3 months of spending, and 29% listed an amount needed for emergency saving that would cover 3 months or more of spending.  Logistic regression analyses showed many household characteristics were related to meeting guidelines in ways similar to effects found by previous researchers, and in addition, an objective financial literacy score was positively related to the likelihood of meeting the guidelines based on actual financial assets, but was not significantly related to reporting the amount of emergency fund needed being at least 3 months of spending.

Author(s): Sunwoo Lee, Sherman Hanna

Presenters
avatar for Sunwoo Tessa Lee

Sunwoo Tessa Lee

Graduate student, Ohio State University


Wednesday October 3, 2018 10:45am - 11:45am
Michigan 2

10:45am

G4b - Social Isolation in Retirement and the Role of Financial Advisors
To our knowledge, this is the first empirical study in financial planning that explores social isolation and loneliness in retirement and how financial advisors can help. Using data from the Health and Retirement Study (HRS), we found that retirees begin to experience increasing levels of loneliness during the middle of their retirement extending into late retirement. Undoubtedly, this impacts their life quality of life leading to mental and physical illnesses and thus higher health care costs which negatively affects portfolio sustainability and financial goals. As the financial planning industry evolves, financial planners should be more engaged in their client's life.  The results presented in this study provides a practical implication for advisors who work with retirees.

Author(s): Yuanshan (Jimmy) Cheng, Tao Guo, Philip Gibson

Presenters
avatar for Yuanshan (Jimmy) Cheng

Yuanshan (Jimmy) Cheng

Assistant Professor of Finance, Winthrop University
Jimmy Cheng is an Assistant Professor of Finance at Winthrop University. He earned his doctoral degree from Texas Tech University. Jimmy is from China and worked for Morningstar Asia for several years. He found his interest in financial planning and decided to get an advanced degree... Read More →


Wednesday October 3, 2018 10:45am - 11:45am
Michigan 2

11:00am

11:30am

FPA® Exhibit Hall & Lunch
FPA®

Wednesday October 3, 2018 11:30am - 1:45pm
Riverside Exhibit Hall

12:00pm

12:00pm

12:45pm

FPA® Quick Start Session
FPA®

Wednesday October 3, 2018 12:45pm - 1:15pm
Plaza Ballroom

12:45pm

12:45pm

Wiley Sponsored Special Session: Meet and Greet New Personal Finance Authors
Stop by to meet personal finance authors Dr. Vickie Bajtelsmit, Dr. John Grable and Dr. Lance Palmer. During this informal session, the authors will discuss their approach to teaching the personal finance course and share teaching tools, techniques, and tips they use to help students avoid early financial mistakes, define their own personal values and secure a strong foundation for the future.

Presenters
avatar for John Grable

John Grable

Professor, University of Georgia
We provide leading-edge teaching, research and outreach that improves the economic well-being for families, increases the quality of life in communities and prepares future leaders and entrepreneurs.Our graduates are entrepreneurs, financial planners, consumer journalists, community... Read More →
avatar for Lance Palmer

Lance Palmer

Professor, Financial Planning, Housing and Consumer Economics, University of Georgia
avatar for Vickie Bajtelsmit, PhD

Vickie Bajtelsmit, PhD

Professor, Colorado State University


Wednesday October 3, 2018 12:45pm - 1:45pm
Michigan 2

1:15pm

1:45pm

Break
Wednesday October 3, 2018 1:45pm - 2:00pm
TBA

2:00pm

2:00pm

2:00pm

FPA® Plan for the 21st Century Retirement [CFP CE]
FPA®

Wednesday October 3, 2018 2:00pm - 3:00pm
Columbus G-J

2:00pm

FPA® Public Policy & Regulation Knowledge Circle
FPA®

Wednesday October 3, 2018 2:00pm - 3:00pm
Roosevelt 1AB

2:00pm

FPA® Tax Reform - The Final Edition [CFP CE]
FPA®

Wednesday October 3, 2018 2:00pm - 3:00pm
Columbus A-F

2:00pm

2:00pm

2:00pm

H1a - Perceptions of Career-Preparedness among Financial Planning and Finance Students
With the increasing costs of education and growing student loan debt, it is imperative that university students select a program of study that adequately engages and prepares them for the workforce. In this study, we examine perceptions of career-readiness between financial planning students and finance students via the lens of self-determination theory (STD). We examine perceptions of career preparedness based on a motivational model that underscores student engagement through dynamic academic work and supportive academic/social networks. The results are expected to support the relevance of student intrinsic need satisfaction for competence, autonomy and relatedness during school tenure and that opportunities for intrinsic need satisfaction are influenced by program of study. Employers, universities and prospective students nationwide can benefit from the findings and implications of this research. We hope to further prompt the development and visibility of financial planning programs nationwide as a worthwhile study option for students.

Author(s): Laura Mattia, Nandita Das, Janine K. Scott

Presenters
LM

Laura Mattia

Raymond James Financial Director Personal Financial Planning Program, University of South Florida


Wednesday October 3, 2018 2:00pm - 3:00pm
Michigan 1A

2:00pm

H1b - Exploring the Effect of Financial Literacy on Financial Risk Tolerance: Evidence from the 2016 Survey of Consumer Finances
We examined the association between financial literacy and financial risk tolerance of US households using the 2016 Survey of Consumer Finances (SCF) dataset.  Results from three logistic regressions on cumulative components of the risk tolerance variable showed that both objective and perceived financial knowledge were positively related to financial risk tolerance. Specifically, objective financial knowledge was positively associated with both willingness to take some risk and high risk while perceived knowledge was positively associated with willingness to take high and substantial risk. This study is the first to estimate the effects of financial literacy on the traditional SCF risk tolerance variable.

Author(s): Kyoung Tae Kim, Sherman D. Hanna

Presenters
avatar for Sherman Hanna

Sherman Hanna

Professor, Ohio State University


Wednesday October 3, 2018 2:00pm - 3:00pm
Michigan 1A

2:00pm

H2a - An Examination of the Influence of Robo-Advisers, Online Financial Services, and Other Information Sources on Investment Styles
Using 2015 National Financial Capability Study - Investor Survey Instrument, this study aims to examine the effects of investment knowledge, financial risk tolerance, information search behavior, and the involvement of online financial resources on investment styles. This study adapted Fan and Chatterjee’s (2017) information search framework and the categorization of sources of information search to examine the investors’ behaviors.

Author(s): Lu Fan, Swarn Chatterjee

Presenters
LF

Lu Fan

Assistant Professor, University of Missouri


Wednesday October 3, 2018 2:00pm - 3:00pm
Michigan 1B

2:00pm

H2b - Do Women Trust Financial Advisors?
This paper analyzes whether older men and women differ in their trust of financial advisor using data from the 2009 National Financial Capability Study (NFCS, 2009).

Author(s): Cagla Yildirim, Charlene Kalenkoski

Presenters
CY

Cagla Yildirim

Assistant Professor, New Mexico State University


Wednesday October 3, 2018 2:00pm - 3:00pm
Michigan 1B

2:00pm

H3a - A Place for Mom: Correlation Between Mandatory Reporting and Older Americans’ Participation in Financial Markets
Elder financial exploitation has been estimated to cost older Americans in excess of $35 billion annually. This paper expects to find evidence of older Americans' preference for being protected from financial exploitation. Using probit and ordered probit models, as well as pooled cross-sectional data from FINRA's National Financial Capability Study, this research analyzes older Americans' preferences for protection from financial exploitation and the correlation these protections have with older American's use of financial products and services. The results indicate that the preference exists and may be correlated to increases or decreases in usage dependent on several factors, including transparency of compensation and complexity of product.

Author(s): B. Steele Campbell, Charlene Kalenkoski, Mitzi Lauderdale

Presenters
BS

Benjamin Steele Campbell

Texas Tech University


Wednesday October 3, 2018 2:00pm - 3:00pm
Michigan 1C

2:00pm

H3b - Predicting REIT Factor Loadings and Structural Alphas from Capital Market Assumptions
Prior research has analyzed the predictability of securitized real estate returns using economic variables, financial factors, and real estate factors. Additionally, scholars contend that an underlying real estate factor exists that explains both securitized and direct real estate returns. We detail how to extract factor risk, return, and correlation assumptions from a set of asset-class risk, return and correlation assumptions. Such capital market assumptions are key tools in the operations of the financial markets. Using a third-party set of such asset-class assumptions, we then implement the extraction technique to demonstrate how to evaluate the implied factor loadings on future REIT returns. Some of these factors are based on economic variable assumptions while others are based on real estate and financial factors. Additionally, we can apply our technique to evaluating other specialized real estate investments including value-added, opportunistic, and region-specific vehicles. Our analysis contributes to the real estate return literature and offers useful insight to the veracity of these important inputs to investment decision making and portfolio construction.

Author(s): Brian C. Payne, William W. Jennings

Presenters
avatar for William Jennings

William Jennings

Professor of Finance and Investments, USAF Academy
William W. Jennings is Professor of Finance and Investments at the U.S. Air Force Academy, where he is the principal finance educator and a senior civilian management professor. He serves the community via various investment committees with over $35 billion in AUM—including at Air... Read More →


Wednesday October 3, 2018 2:00pm - 3:00pm
Michigan 1C

2:00pm

H4a - The Effect of Financial Literacy on Homeowners and Renters Having a Heavy Financial Obligations Burden
Previous research using the Survey of Consumer Finances (SCF) has found a positive effect of education on the likelihood of having financial obligations ratio over 40%, but until 2016, SCF datasets did not have direct measures of financial literacy.  The 2016 SCF dataset has three financial literacy questions, allowing for the use of a financial literacy score as an independent variable. The purpose of this study was to analyze how financial literacy affected the likelihood of U.S. renter and homeowner households having a financial obligations ratio over 40%. Based on the logistic regression results, no evidence of relationship is supported between financial literacy scores and households’ having a heavy financial obligations burden. The lack of an effect of financial literacy on having a heavy financial obligations burden suggests that having a financial obligations burden over 40% of income is not necessarily a mistake, for both homeowners or for renters.

Author(s): Congrong Ouyang, Sherman D. Hanna

Presenters
avatar for Congrong Ouyang

Congrong Ouyang

PhD student, Ohio State University


Wednesday October 3, 2018 2:00pm - 3:00pm
Michigan 2

2:00pm

H4b - The Relationship Between Well-Being and Financial Self-Efficacy for Older Adults
The purpose of this study is to investigate how five well-being characteristics from Positive Psychology are related to the FSE beliefs of older adults: positive emotions, engagement, relationships, meaning, and accomplishment. This study builds upon existing literature by examining how psychological and social environmental factors shape FSE beliefs using theory and literature from Positive Psychology. Furthermore, financial planning researchers predominantly use observed scales to measure psychological constructs; this study demonstrates how a confirmatory factor analysis is employed within a structural equation modeling framework to measure psychological constructs and more effectively manage error with a large dataset commonly used in financial planning research—the Health and Retirement Study.

Author(s): Sarah D. Asebedo

Presenters
SA

Sarah Asebedo, Ph.D., CFP®

Assistant Professor, Texas Tech University


Wednesday October 3, 2018 2:00pm - 3:00pm
Michigan 2

3:00pm

Coffee Break
Wednesday October 3, 2018 3:00pm - 3:30pm
Riverside Exhibit Hall

3:15pm

FPA® Quick Start Session
FPA®

Wednesday October 3, 2018 3:15pm - 3:45pm
Plaza Ballroom

3:15pm

3:30pm

FPA® Applied Behavioral Economics Knowledge Circle
FPA®

Wednesday October 3, 2018 3:30pm - 4:30pm
Roosevelt 1AB

3:30pm

3:30pm

3:30pm

3:30pm

I1b - Student Loans and Financial Satisfaction: The Moderating Role of Financial Education
We examined the association between holding a student loan and financial satisfaction and the moderating role of financial education using the 2015 National Financial Capability Study dataset. Households that hold a student loan had a lower level of financial satisfaction than did those without a student loan. We found a moderating role of receiving both formal and informal financial education on the relation between student loan and financial satisfaction regardless of for whom they took the loan. Our findings confirmed the importance of financial education and suggest that receiving a thorough combination of formal and informal education will improve student loan holders’ financial satisfaction.

Author(s): Kyoung Tae Kim, Jonghee Lee, Jae Min Lee

Presenters

Wednesday October 3, 2018 3:30pm - 4:30pm
Michigan 1A

3:30pm

I2a - Understanding a Client’s Impulse to Help Others: How Self Efficacy Relates to Giving Money and Time Away
It is often the case that a client’s desire to help others through the giving of their money (charitable donations) and time (volunteer hours) is very strong, especially in America. According to the Almanac of American Philanthropy, the U.S., is the leading nation in charitable giving. According to the Charities Aid Foundation, the U.S. has the second highest volunteer score in the world. But, not every client prioritizes giving as an important goal in their financial plan. Why do some clients give, while others do not?  This study explores the concept of self-efficacy empirically, showing that those with higher self-efficacy are associated with a higher probability of helping behavior (e.g., giving money or time), as predicted by both Social Cognitive Theory and an adapted Theory of Planned Behavior. Given this association, a planner can better predict and incorporate into a comprehensive financial plan their client’s charitable intention through assessing their client’s general self-efficacy.

Author(s): Shane Enete, Stuart Heckman

Presenters
SE

Shane Enete

Assistant Professor of Finance, Biola University and Kansas State Univeristy


Wednesday October 3, 2018 3:30pm - 4:30pm
Michigan 1B

3:30pm

I2b - Financial Knowledge and Financial Confidence as Mediators Between Gender and Positive Financial Behaviors
A multiple mediation model is used to explore the role of financial knowledge and financial confidence as mediators between gender and positive financial behaviors in a sample of 2015 NFCS respondents who indicated that they were the only adult in the household. Results suggest that gender differences in financial behaviors exist, but they can be eliminated with increased attention to the financial knowledge and confidence of women. Financial planners, therapists, and educators can use these results to target financial education programs toward women with an emphasis on not just delivering financial knowledge to women, but also encouraging them to seek out financial education and cultivating their confidence to apply it when given the opportunity to do so.

Author(s): Somer G. Anderson, Camila Haselwood, Martin C. Seay

Presenters
SA

Somer Anderson

Assistant Professor-Accounting and Assistant Dean, John E. Simon School of Business, Maryville University


Wednesday October 3, 2018 3:30pm - 4:30pm
Michigan 1B

3:30pm

I3a - The Sustainable Growth Rate, DuPont Analysis, and the Cross-Section of Returns
We investigate the sustainable growth rate and DuPont components for asset pricing and portfolio performance evaluation. Employing data from 1990 through 2012 and a three-component DuPont ROE, we present evidence indicating that long short investment strategies based on sustainable growth rate, ROE, profit margin, and asset turnover yield significant positive alphas while long-short investment strategies based on the equity multiplier yield significant negative alphas. Surprisingly, the long-short portfolios based on equity multiplier produced significant alpha even in the following two quarters.

Author(s): Yuntaek Pae, Omid Sabbaghi, Navid Sabbaghi

Presenters
YP

Yuntaek Pae

Assistant Professor of Finance, Central Washington University


Wednesday October 3, 2018 3:30pm - 4:30pm
Michigan 1C

3:30pm

I3b - Vulnerable to What?: A Measurement Model for Predicting Vulnerability to Financial Hardship
The focus in financial decision-making has shifted from normative to subjective measures of financial wellness. While subjective measures bring the voice of the consumer into the study of financial well-being, there are still objective financial realities to consider. We provide a framework for thinking of financial vulnerability as the risk of financial hardship (i.e., the experience of physical and/or emotional distress related to his or her ability to maintain a standard of living). In this view, financial vulnerability is not a condition but the risk (or probability) of experiencing a negative financial condition. Our study seeks to offer a means of providing a tangible score of one’s vulnerability to financial hardship while illuminating the factors influencing one’s vulnerability. Using the 2016 CFPB National Financial Well-Being Survey, we find that a combination of demographics, behaviors, and social-psychological indicators offers the most comprehensive picture of an individual’s vulnerability to financial hardship.

Author(s): Dee Warmath, Genevieve Elizabeth O’Connor, Casey E. Newmeyer, Nancy Wong

Presenters
DW

Dee Warmath

Assistant Professor, University of Georgia


Wednesday October 3, 2018 3:30pm - 4:30pm
Michigan 1C

3:30pm

I4a - Issues with the Transition Mechanism in the Actuarial Approach to Retirement Spending
This paper highlights some issues with the actuarial retirement withdrawal strategy. Potential problems exist with the transition mechanism (present value of an annuity calculation) as the retiree ages.  With poor initial returns the actuarial approach does not cut spending quickly enough, due to the mathematics of the annuity formula.  In addition, spending rates can be too high or too low initially depending on the assumed discount rate, which can result in the inefficient spending down of wealth. If a future value is specified as a bequest/safety net, the minimum annual spending over the 30-year period decreases as the future value increases. The effect of a desired future value on annual spending volatility depends on whether the actual subsequent compounding rate is high or low. An increase in the desired future value results in smaller initial withdrawals, with the portfolio’s recovery dependent on future returns.  As remaining longevity declines with a constant future value, large (small) positive returns as the retiree ages force the transition mechanism (PVAN) to significantly increase (not significantly increase) the annual withdrawal, thus increasing (decreasing) the standard deviation.  This effect can possibly turn annual spending negative. Therefore the actuarial approach, while providing solutions to some issues, creates new ones.

Author(s): Ken Johnston, John Hatem, Thomas Carnes, Arman Kosedag

Presenters
KJ

Ken Johnston

Associate Professor of Finance, Berry C


Wednesday October 3, 2018 3:30pm - 4:30pm
Michigan 2

4:00pm

4:00pm

4:00pm

4:30pm

Break
Wednesday October 3, 2018 4:30pm - 4:45pm
TBA

4:45pm

4:45pm

FPA® Business Success Knowledge Circle
FPA®

Wednesday October 3, 2018 4:45pm - 5:45pm
Roosevelt 1AB

4:45pm

4:45pm

FPA® Marketing to the Middle
FPA®

Wednesday October 3, 2018 4:45pm - 5:45pm
Columbus A-F

4:45pm

4:45pm

J1a - Association among Financial Risk Tolerance and the Personality Traits of Sensation-seeking, Locus of Control for Pre-retiree Baby Boomers
Financial Risk tolerance is an important concept for a financial planner to recommend financial products. As the baby boom generation approaches retirement, research to determine how these individuals perceive financial risk tolerance has grown exponentially. The present study tries to determine the relationship between financial risk tolerance and some personality traits, such as sensation-seeking, locus of control of the baby boomers. It finds that a baby boomer with an external locus of control would be more risk-averse and a person who is a sensation seeker has significantly higher risk tolerance than one who is not a sensation seeker. Meanwhile, gender and race do not mediate the associations among risk tolerance and locus of control and sensation seeking.

Author(s): Abed G. Rabbani, Zheying Yao, John E. Grable

Presenters
avatar for Abed G. Rabbani

Abed G. Rabbani

PhD, CFP®, University of Missouri


Wednesday October 3, 2018 4:45pm - 5:45pm
Michigan 1A

4:45pm

J2a - Household Collective Decision-Making and Consumer Debt
This study explored the determinants of consumer borrowing by a couple as a function of collective bargaining between two partners with different intertemporal preferences. An accountant-shopper collective bargaining framework was developed for this purpose. A sample of households was extracted from De Nederlandsche Bank Household Survey, which allows for dyadic data analysis. Logistic regression was used to model the likelihood of a household reporting the use of consumer debt. Consistent with theoretical predictions, the bargaining power of the future-oriented accountant had a negative influence on the use of consumer debt; and the bargaining power of the present-oriented shopper had a positive influence on the use of consumer debt. Several implications for future research are discussed.

Author(s): David Allen Ammerman, Maurice MacDonald

Presenters
avatar for David Allen Ammerman

David Allen Ammerman

Assistant Professor of Finance, West Texas A&M University


Wednesday October 3, 2018 4:45pm - 5:45pm
Michigan 1B

4:45pm

J2b - The Effect of Myopic Behavior on Stock Market Risk Perception
We investigate whether myopic behavior influences respondents’ risk perception of future stock market returns. Using the 2012 wave of the Health and Retirement Study, we find that investors who are myopic (i.e. follow the stock market “very closely” or “somewhat closely”) are significantly more likely to be in a higher subjective probability group that believes the market for blue chip stocks will drop by 20 percent or more next year. In addition, we find that older cohorts and stockholders have a more accurate perception of future stock market returns than do younger cohorts and non-stockholders. Financial planning implications are provided.

Author(s): Yi Liu , Michael Guillemette

Presenters
avatar for Yi (Bessie) Liu

Yi (Bessie) Liu

Ph.D Student, Texas Tech University
Yi (Bessie) Liu is a Ph.D. student in the Department of Personal Financial Planning at Texas Tech University. She aims to serve diversified groups especially for first and second generation immigrants as well as Asian-Americans to assist them in achieving a better financial futur... Read More →


Wednesday October 3, 2018 4:45pm - 5:45pm
Michigan 1B

4:45pm

J3b - The Value Of Alumni Networks: Evidence From The Mutual Fund Industry In China
We study word-of-mouth effects on institutional investors through the interaction channel of alumni networks in China. After controlling for organization-based and location-based interpersonal connections, we find that mutual fund managers who graduated from the same college/university have more common stock holdings and are more likely to buy or sell the same stocks contemporaneously. As a result, alumni managers exhibit a higher correlation of fund returns. However, the influence of alumni relationship on mutual fund investments becomes weaker when more managers are connected within the network. We also find a positive and significant relation between alumni connection and fund performance. Our findings suggest that information dissemination among connected fund managers could be one of the driving forces for mutual fund herding behavior and that a portfolio of funds whose managers are educationally connected could be highly exposed to certain stocks and risks.

Author(s): Leng Ling, Quanxi Liang, Haijian Zeng

Presenters
LL

Leng Ling

Professor of Finance, Georgia College & State University


Wednesday October 3, 2018 4:45pm - 5:45pm
Michigan 1C

5:15pm

FPA® The Future of Blockchain
Wednesday October 3, 2018 5:15pm - 6:15pm
Columbus G-J

5:15pm

5:45pm

AFS Annual Meeting Adjourns
Wednesday October 3, 2018 5:45pm - 5:45pm
N/A

5:45pm

FPA® Opening Reception - MUST HAVE FPA NAMETAG
FPA®

The AFS Annual Meeting adjourns at 5:45 pm.

It  does not include the FPA Opening Reception. If you are also registered for FPA, you will need your FPA nametag to enter. AFS nametags will not allow admittance to this event.

Wednesday October 3, 2018 5:45pm - 7:00pm
Riverside Exhibit Hall