Racial Concordance in the Market for Financial Advice

Christopher P. Clifford; William C. Gerken; Tian Qiu

doi:10.1093/rcfs/cfad005

Racial Concordance in the Market for Financial Advice

Christopher P. Clifford, William C. Gerken, Tian Qiu

Finance and Quantitative Methods

Research output: Contribution to journal › Article › peer-review

1 Scopus citations

Abstract

We examine the role of race and racial concordance between financial advisors and their local community. We document significant differences in stock market participation based on community racial composition, as well as differences in the characteristics of communities served by minority advisors. Notably, minority advisors are more likely to serve racially concordant communities, which tend to be poorer. We find that racial concordance has only a modest relation with local stock market participation. However, while minority advisors are more likely to leave the industry, this relation is mitigated among advisors located in more concordant communities.

Original language	English
Pages (from-to)	906-938
Number of pages	33
Journal	Review of Corporate Finance Studies
Volume	12
Issue number	4
DOIs	https://doi.org/10.1093/rcfs/cfad005
State	Published - Nov 1 2023

Bibliographical note

Publisher Copyright:
© 2023 The Author(s). Published by Oxford University Press on behalf of The Society for Financial Studies. All rights reserved.

ASJC Scopus subject areas

Business and International Management
Finance
Economics and Econometrics

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Racial Concordance in the Market for Financial Advice

Abstract

Bibliographical note

ASJC Scopus subject areas

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