You Should Find Out What Kind Of Car Your Financial Advisor Drives

December 26, 2016 in Daily Bulletin

Stephen Brown, Yan Lu, Sugata Ray, and Melvyn Teo published a paper on what you can learn from the kind of car a financial advisor drives:

  • Those who drive sports cars are more likely to take risks with investments.
  • However, this risk doesn’t result in higher returns.
  • Those who like to go fast and furious are also more likely to engage in fraudulent behaviour, and to terminate their investment funds.
  • The results indicate that those who like to drive sports cars are thrill-seekers, and this personality trait extends into their professional lives.

Read the entire study here.

Source: SSRN