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

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Oral Session [clear filter]
Wednesday, October 3
 

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

Ph.D. Student, Ohio State University


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

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. Candidate, 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