Real Estate Shocks and Financial Advisor Misconduct

Stephen G. Dimmock, William C. Gerken, Tyson Van Alfen

Research output: Contribution to journalArticlepeer-review

8 Scopus citations


We test whether personal real estate shocks affect professional misconduct by financial advisors. We use a panel of advisors' home addresses and examine within-advisor variation relative to other advisors who work at the same firm and live in the same ZIP code. We find a negative relation between housing returns and misconduct. We show that advisors' housing returns explain misconduct against out-of-state customers, breaking the link between customer and advisor housing shocks. Furthermore, the results are stronger for advisors with lower career risk from committing misconduct, and for advisors with greater borrowing constraints.

Original languageEnglish
Pages (from-to)3309-3346
Number of pages38
JournalJournal of Finance
Issue number6
StatePublished - Dec 2021

Bibliographical note

Publisher Copyright:
© 2021 the American Finance Association

ASJC Scopus subject areas

  • Accounting
  • Finance
  • Economics and Econometrics


Dive into the research topics of 'Real Estate Shocks and Financial Advisor Misconduct'. Together they form a unique fingerprint.

Cite this