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The value of personal professional financial advice to clients: A systematic quantitative literature review

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  • Kirsten L. MacDonald
  • Ellana Loy
  • Mark Brimble
  • Karen Wildman

Abstract

Financial advice is perceived to be inaccessible and complicated with consumers at the mercy of a sector under sustained scrutiny, raising questions about value for clients. This study systematically reviews the literature on the value of financial advice. Extant research focuses on financial benefits and lacks a holistic view of value and the factors impacting it. Gaps exist across non‐financial benefits, geographic regions and over time. We call for a sustained and coordinated approach to research in this field. The findings inform consumer engagement strategies, policies concerning the uptake of professional financial advice and development of the profession.

Suggested Citation

  • Kirsten L. MacDonald & Ellana Loy & Mark Brimble & Karen Wildman, 2023. "The value of personal professional financial advice to clients: A systematic quantitative literature review," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 63(4), pages 4399-4429, December.
    • Handle: RePEc:bla:acctfi:v:63:y:2023:i:4:p:4399-4429
    DOI: 10.1111/acfi.13099
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    References listed on IDEAS

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    1. Hackethal, Andreas & Haliassos, Michael & Jappelli, Tullio, 2012. "Financial advisors: A case of babysitters?," Journal of Banking & Finance, Elsevier, vol. 36(2), pages 509-524.
    2. Bajo, Emanuele & Barbi, Massimiliano & Hillier, David, 2020. "Where should I publish to get promoted? A finance journal ranking based on business school promotions," Journal of Banking & Finance, Elsevier, vol. 114(C).
    3. Daniel Hoechle & Stefan Ruenzi & Nic Schaub & Markus Schmid, 2018. "Financial Advice and Bank Profits," The Review of Financial Studies, Society for Financial Studies, vol. 31(11), pages 4447-4492.
    4. Mitchell Marsden & Cathleen Zick & Robert Mayer, 2011. "The Value of Seeking Financial Advice," Journal of Family and Economic Issues, Springer, vol. 32(4), pages 625-643, December.
    5. Claude Montmarquette & Nathalie Viennot-Briot, 2015. "The Value of Financial Advice," Annals of Economics and Finance, Society for AEF, vol. 16(1), pages 69-94, May.
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