Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/228864 
Year of Publication: 
2019
Citation: 
[Journal:] Journal of Finance Issues [Volume:] 18 [Issue:] 2 [Publisher:] Academy of Finance [Place:] Chicago [Year:] 2019 [Pages:] 33-50
Publisher: 
Academy of Finance, Chicago
Abstract: 
The purpose of this study is to explore the demand for robo-advising services by analyzing the participants’ behavioral characteristics and investment patterns. With the 2015 Financial Industry Regulatory Authority Investor data, we found that robo-advisor users were younger investors with high risk tolerance, whose self-assessment of financial knowledge is comparatively higher than their actual knowledge, and were independent decision-makers. By controlling for those behavioral attributes of robo-advisor users, we also found that robo-advisor users were reluctant to invest in individual stocks, while they showed the largest preference for investing in pooled investment products such as Exchange Traded Funds. Implications of this study’s findings can be beneficial to financial planning practitioners, academics, and regulators.
Subjects: 
Robo-advisors
Fintech
Financial Planning
Financial Literacy
Investing
Risk Tolerance
JEL: 
D14
D91
G41
G51
G53
Document Type: 
Article
Document Version: 
Published Version
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