Abstract
This paper examines the influence of financial advisors on the portfolio performance of individual investors. We use an unique dataset of of 233,693 monthly equity returns of 6,758 Dutch investors during a 52 month time span. By using panel estimation techniques, we find that advisors have a significant negative effect on gross and net equity returns of individual investors. Results from the Glesjer’s (1969) test support the notion that this outcome can (at least partly) be explained by lower return variability in advised portfolios. 1 Finance Department, Faculty of Economics & Business, University of Groningen (NL) , E-Mail: m.m.kramer@rug.nl. The usual disclaimer applies.
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