Racial animosity and Black financial advisor underrepresentation

Author:

DiBartolomeo Jeffrey A.1ORCID,Kothakota Michael G.2,Parks‐Stamm Elizabeth J.3,Tharp Derek T.1

Affiliation:

1. Department of Accounting and Finance University of Southern Maine Portland Maine USA

2. Department of Research CFP Board Washington, DC USA

3. Department of Psychology University of Southern Maine Portland Maine USA

Abstract

AbstractThis study provides compelling evidence for Black underrepresenation in the financial advisor industry. Using a dataset of all U.S. securities‐licensed individuals (N = 642,543), we first estimate the racial and ethnic composition of the industry using an algorithm that accounts for name, gender, and location. Second, we use a dataset enhanced by a commercial vendor to restrict the analysis to only those identified as working as financial advisors (n = 237,435). Using Google search volume for a racial epithet as a proxy for area racism, we find that greater racism in a market is associated with greater Black advisor underrepresentation. Overall, we estimate at the individual level that 10.1% of financial advisors are Black (relative to 13.4% of the U.S. population). Furthermore, our results suggest market‐level racial animosity toward Blacks is negatively associated with Black advisor representation. We estimate a difference of 0.9 percentage points when comparing markets with the highest and lowest levels of animosity. For the average market with an estimated 11.4% Black advisor representation, an increase of 0.9 percentage points would represent a 7.9% increase in Black advisor representation.

Publisher

Wiley

Subject

General Medicine

Reference33 articles.

1. Priorities and challenges: Wealth management and financial planning among affluent Black families

2. Minority Vulnerability in Privileged Occupations

3. Austerity plan announcements and the impact on the employees’ wellbeing

4. Britton D.(2014).Minority clients want culturally diverse advisory firms. Retrieved fromhttps://www.wealthmanagement.com/prospecting/minority‐clients‐want‐culturally‐diverse‐advisory‐firms

5. Bureau of labor statistics. (2020).Employed persons by detailed occupation sex race and Hispanic or Latino ethnicity. Retrieved fromhttps://www.bls.gov/cps/cpsaat11.htm

Cited by 1 articles. 订阅此论文施引文献 订阅此论文施引文献,注册后可以免费订阅5篇论文的施引文献,订阅后可以查看论文全部施引文献

同舟云学术

1.学者识别学者识别

2.学术分析学术分析

3.人才评估人才评估

"同舟云学术"是以全球学者为主线,采集、加工和组织学术论文而形成的新型学术文献查询和分析系统,可以对全球学者进行文献检索和人才价值评估。用户可以通过关注某些学科领域的顶尖人物而持续追踪该领域的学科进展和研究前沿。经过近期的数据扩容,当前同舟云学术共收录了国内外主流学术期刊6万余种,收集的期刊论文及会议论文总量共计约1.5亿篇,并以每天添加12000余篇中外论文的速度递增。我们也可以为用户提供个性化、定制化的学者数据。欢迎来电咨询!咨询电话:010-8811{复制后删除}0370

www.globalauthorid.com

TOP

Copyright © 2019-2024 北京同舟云网络信息技术有限公司
京公网安备11010802033243号  京ICP备18003416号-3