Egan, Mark L. →

Why Investors Often Lose When They Sue Their Financial Adviser

Forty percent of American investors rely on financial advisers, but the COVID-19 market rollercoaster may have highlighted a weakness when disputes arise. The system favors the financial industry, says Mark Egan. Open for comment; 0 Comments.

Recovering Investor Expectations from Demand for Index Funds

Understanding investor beliefs, how beliefs are formed, and the dynamics of these beliefs is critical for explaining investment and saving behavior. This paper’s framework uses observed ETF trades to recover the distribution of investor expectations over the period 2008-2018 and provides new insights about the dynamics of these beliefs.

The Value of Intermediation in the Stock Market

Despite the rise of alternative trading platforms, high-touch broker trading remains prominent in institutional equity markets. The authors analyze how fees, research, quality of execution, and information can help explain how execution decisions and preferences vary across investors.

Women Receive Harsher Punishment at Work Than Men

Women caught in misconduct were 20 percent more likely to be fired and 30 percent less likely to find new employment in the financial services industry, reports new research by Mark Egan and colleagues. Open for comment; 0 Comments.

Arbitration with Uninformed Consumers

Using data on securities disputes, this study of information advantages in consumer arbitration finds that industry-friendly arbitrators are 40 percent more likely than consumer-friendly arbitrators to be selected to take on arbitration cases. Limiting respondents’ and claimants’ inputs over the selection process could improve outcomes for consumers.

When Harry Fired Sally: The Double Standard in Punishing Misconduct

Despite committing misconduct less often and less severely than men, female advisers in the financial adviser industry face more severe punishment in the labor market, a finding strongly correlated with the gender composition of the managerial team. A similar punishment gap and mitigating factors affect ethnic minority men.

The Startling Percentage of Financial Advisors with Misconduct Records

One in twelve financial advisors have been disciplined for serious misconduct, according to a recent study by finance professor Mark Egan and colleagues. The bad apples are rarely punished. Open for comment; 0 Comments.