Investor Characteristics and their Impact on the Decision to use a Robo-advisor

Faculty/Professorship: Finance  
Author(s): Oehler, Andreas  ; Horn, Matthias  ; Wendt, Stefan
Publisher Information: Bamberg : Otto-Friedrich-Universität
Year of publication: 2022
Pages: 35
Source/Other editions: Journal of Financial Services Research, (2021), 35 S. - ISSN: 1573-0735
is version of: 10.1007/s10693-021-00367-8
Year of first publication: 2021
Language(s): English
Licence: Creative Commons - CC BY - Attribution 4.0 International 
URN: urn:nbn:de:bvb:473-irb-545424
We survey 231 undergraduate students to analyze how retail investors’ characteristics influence their decision to use a robo-advisor. Characteristics such as the willingness to take risk, extraversion, and optimism are significant in univariate tests but the willingness to take risk and the internal locus of control are significant in multivariate settings. Participants who use the robo-advisor invest more and are more likely to also invest on their own in both stocks and bonds. We also find statistically significant differences between participants who exclusively use the robo-advisor for investments in stocks and bonds and participants who use the robo-advisor and invest some money in stocks and bonds on their own.
GND Keywords: Haushalt; Kapitalanlage; Anlageverhalten; Vermögensverwaltung; Digitalisierung
Keywords: Robo-advisor, Financial Advice, Portfolio Management, Investments, Personal Finance, Household Finance
DDC Classification: 650 Management & public relations  
RVK Classification: QK 800   
Type: Article
Release Date: 14. July 2022

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