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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
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    References listed on IDEAS

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    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.
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    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.

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