IDEAS home Printed from https://ideas.repec.org/a/inm/ormnsc/v68y2022i11p8464-8482.html
   My bibliography  Save this article

Public Concern About Immigration and Customer Complaints Against Minority Financial Advisors

Author

Listed:
  • Kelvin K. F. Law

    (Nanyang Business School, Nanyang Technological University, Singapore 639798)

  • Luo Zuo

    (SC Johnson College of Business, Cornell University, Ithaca, New York 14853)

Abstract

We examine the relation between public concern about immigration and customer complaints against minority financial advisors in the United States. We find that minority advisors are more likely to receive complaints in periods of high public concern about immigration than in other periods, relative to their white colleagues from the same firm, at the same office location, and at the same point in time. This result holds for both complaints with merit and dismissed complaints and is more pronounced in counties where residents likely hold stronger anti-immigration views. We also find that minority advisors are more likely to face regulatory actions or leave their firms after customer allegations in periods of high public concern about immigration than in other periods. Overall, our study provides descriptive evidence of a positive relation between public concern about immigration and customer dissatisfaction with minority advisors.

Suggested Citation

  • Kelvin K. F. Law & Luo Zuo, 2022. "Public Concern About Immigration and Customer Complaints Against Minority Financial Advisors," Management Science, INFORMS, vol. 68(11), pages 8464-8482, November.
    • Handle: RePEc:inm:ormnsc:v:68:y:2022:i:11:p:8464-8482
    DOI: 10.1287/mnsc.2021.4283
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1287/mnsc.2021.4283
    Download Restriction: no
    File URL: https://libkey.io/10.1287/mnsc.2021.4283?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Kelvin K. F. Law & Lillian F. Mills, 2019. "Financial Gatekeepers and Investor Protection: Evidence from Criminal Background Checks," Journal of Accounting Research, Wiley Blackwell, vol. 57(2), pages 491-543, May.
    2. Harry J. Holzer & Keith R. Ihlanfeldt, 1998. "Customer Discrimination and Employment Outcomes for Minority Workers," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 113(3), pages 835-867.
    3. Mark Egan & Gregor Matvos & Amit Seru, 2022. "When Harry Fired Sally: The Double Standard in Punishing Misconduct," Journal of Political Economy, University of Chicago Press, vol. 130(5), pages 1184-1248.
    4. Mark Egan & Gregor Matvos & Amit Seru, 2019. "The Market for Financial Adviser Misconduct," Journal of Political Economy, University of Chicago Press, vol. 127(1), pages 233-295.
    5. Scott R. Baker & Nicholas Bloom & Steven J. Davis, 2016. "Measuring Economic Policy Uncertainty," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 131(4), pages 1593-1636.
    6. Becker, Gary S., 1971. "The Economics of Discrimination," University of Chicago Press Economics Books, University of Chicago Press, edition 2, number 9780226041162, January.
    7. Giovanni Facchini & Anna Maria Mayda, 2009. "Does the Welfare State Affect Individual Attitudes toward Immigrants? Evidence across Countries," The Review of Economics and Statistics, MIT Press, vol. 91(2), pages 295-314, May.
    8. Ruomeng Cui & Jun Li & Dennis J. Zhang, 2020. "Reducing Discrimination with Reviews in the Sharing Economy: Evidence from Field Experiments on Airbnb," Management Science, INFORMS, vol. 66(3), pages 1071-1094, March.
    9. Kenneth F. Scheve & Matthew J. Slaughter, 2001. "Globalization and the Perceptions of American Workers," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 109, January.
    10. Dougal, Casey & Gao, Pengjie & Mayew, William J. & Parsons, Christopher A., 2019. "What’s in a (school) name? Racial discrimination in higher education bond markets," Journal of Financial Economics, Elsevier, vol. 134(3), pages 570-590.
    11. Ted Brader & Nicholas A. Valentino & Elizabeth Suhay, 2008. "What Triggers Public Opposition to Immigration? Anxiety, Group Cues, and Immigration Threat," American Journal of Political Science, John Wiley & Sons, vol. 52(4), pages 959-978, October.
    12. Stephen G. Dimmock & William C. Gerken & Nathaniel P. Graham, 2018. "Is Fraud Contagious? Coworker Influence on Misconduct by Financial Advisors," Journal of Finance, American Finance Association, vol. 73(3), pages 1417-1450, June.
    13. Andrew Silver, 2020. "US political crackdown spurs fears of Chinese brain-drain," Nature, Nature, vol. 585(7825), pages 335-336, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Mia Hang Pham & Harvey Nguyen & Martin Young & Anh Dao, 2024. "Who Keeps Company with the Wolf will Learn to Howl: Does Local Corruption Culture Affect Financial Adviser Misconduct?," Journal of Business Ethics, Springer, vol. 194(1), pages 185-210, September.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Petya Platikanova, 2023. "The Real Effects of Analyst Research Quality: Evidence from the Adoption of the Broker Protocol," Australian Accounting Review, CPA Australia, vol. 33(3), pages 237-261, September.
    2. Cook, Jonathan & Kowaleski, Zachary T. & Minnis, Michael & Sutherland, Andrew & Zehms, Karla M., 2020. "Auditors are known by the companies they keep," Journal of Accounting and Economics, Elsevier, vol. 70(1).
    3. Nikhar Gaikwad & Gareth Nellis, 2017. "The Majority‐Minority Divide in Attitudes toward Internal Migration: Evidence from Mumbai," American Journal of Political Science, John Wiley & Sons, vol. 61(2), pages 456-472, April.
    4. John (Jianqiu) Bai & Chenguang Shang & Chi Wan & Yijia Eddie Zhao, 2022. "Social Capital and Individual Ethics: Evidence from Financial Adviser Misconduct," Journal of Business Ethics, Springer, vol. 181(2), pages 495-518, November.
    5. Mark Egan & Shan Ge & Johnny Tang, 2022. "Conflicting Interests and the Effect of Fiduciary Duty: Evidence from Variable Annuities," The Review of Financial Studies, Society for Financial Studies, vol. 35(12), pages 5334-5386.
    6. Anna Ulrichshofer & Markus Walzl, 2020. "Customer Disputes, Misconduct, and Reputation Building in the Market for Financial Advice," Working Papers 2020-20, Faculty of Economics and Statistics, Universität Innsbruck.
    7. Benjamin Bennett & Isil Erel & Léa H. Stern & Zexi Wang, 2020. "Paid Leave Pays Off: The Effects of Paid Family Leave on Firm Performance," NBER Working Papers 27788, National Bureau of Economic Research, Inc.
    8. Pierre-Philippe Combes & Bruno Decreuse & Morgane Laouénan & Alain Trannoy, 2016. "Customer Discrimination and Employment Outcomes: Theory and Evidence from the French Labor Market," Journal of Labor Economics, University of Chicago Press, vol. 34(1), pages 107-160.
    9. Lee Jungmin, 2009. "American Idol: Evidence on Same-Race Preferences," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 9(1), pages 1-21, July.
    10. Richard C. K. Burdekin & Richard T. Hossfeld & Janet Kiholm Smith, 2005. "Are NBA Fans Becoming Indifferent to Race? Evidence From the 1990s," Journal of Sports Economics, , vol. 6(2), pages 144-159, May.
    11. Cole, Rebel & Johan, Sofia & Schweizer, Denis, 2021. "Corporate failures: Declines, collapses, and scandals," Journal of Corporate Finance, Elsevier, vol. 67(C).
    12. Peter Koudijs & Laura Salisbury & Gurpal Sran, 2021. "For Richer, for Poorer: Bankers' Liability and Bank Risk in New England, 1867 to 1880," Journal of Finance, American Finance Association, vol. 76(3), pages 1541-1599, June.
    13. Pierre-Philippe Combes & Bruno Decreuse & Morgane Laouénan & Alain Trannoy, 2016. "Customer Discrimination and Employment Outcomes: Theory and Evidence from the French Labor Market," Journal of Labor Economics, University of Chicago Press, vol. 34(1), pages 107-160.
    14. Jacquemet, Nicolas & Yannelis, Constantine, 2012. "Indiscriminate discrimination: A correspondence test for ethnic homophily in the Chicago labor market," Labour Economics, Elsevier, vol. 19(6), pages 824-832.
    15. Kehrberg Jason, 2020. "Authoritarianism, Prejudice, and Support for Welfare Chauvinism in the United States," Statistics, Politics and Policy, De Gruyter, vol. 11(2), pages 195-212, December.
    16. Laouénan, Morgane, 2017. "‘Hate at First Sight’: Evidence of consumer discrimination against African-Americans in the US," Labour Economics, Elsevier, vol. 46(C), pages 94-109.
    17. Lex Borghans & Bas Ter Weel & Bruce A. Weinberg, 2014. "People Skills and the Labor-Market Outcomes of Underrepresented Groups," ILR Review, Cornell University, ILR School, vol. 67(2), pages 287-334, April.
    18. repec:hal:spmain:info:hdl:2441/2tlvpn71ve888pnch88db9g683 is not listed on IDEAS
    19. Kleiner, Kristoph & Stoffman, Noah & Yonker, Scott E., 2021. "Friends with bankruptcy protection benefits," Journal of Financial Economics, Elsevier, vol. 139(2), pages 578-605.
    20. Helena Fornwagner & Monika Pompeo & Nina Serdarevic, 2020. "Him or her? Choosing competition on behalf of someone else," Discussion Papers 2020-13, The Centre for Decision Research and Experimental Economics, School of Economics, University of Nottingham.
    21. Kimberly Ellis & Phyllis Keys, 2015. "Workforce diversity and shareholder value: a multi-level perspective," Review of Quantitative Finance and Accounting, Springer, vol. 44(2), pages 191-212, February.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:inm:ormnsc:v:68:y:2022:i:11:p:8464-8482. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Asher (email available below). General contact details of provider: https://edirc.repec.org/data/inforea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.