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Showing papers in "Financial Services Review in 2002"


Journal Article
TL;DR: This article found that women generally have less enthusiasm for, lower confidence in, and less willingness to learn about personal finance topics than men do, while men rate English and humanity courses more important.

475 citations


Journal Article
TL;DR: A review of behavioral finance as it relates to investors can be found in this article, where the authors examine common investment mistakes caused by an investor's cognitive and emotional weaknesses and group these mistakes into two categories: how investors think and how investors feel.

254 citations


Journal Article
TL;DR: In this article, the authors studied the characteristics of investment decisions and identified the factors that affect consumers' information search behavior when they make investment decisions, including subjective knowledge, amount of investment, risk tolerance, age, education and income.

76 citations


Journal Article
TL;DR: The authors examined the use of financial planners by U.S. households using data from the 1998 Survey of Consumer Finances and found that over one-fifth (21.2%) of households use financial planners.

70 citations


Journal Article
TL;DR: The role of education and practice standards in the development of the personal financial planning profession has been discussed in this paper, where the authors examine the relationship between universities and other planning constituents.

51 citations


Journal ArticleDOI
TL;DR: Woo et al. as discussed by the authors used a Probit regression model to predict dropout in the American Dream Demonstration (ADD) and found that participants are less likely to drop out if they already own some assets, whether human (education or age), financial (checking accounts), physical (homes or cars), or social (marriage).

42 citations


Journal Article
TL;DR: In this paper, the authors argue that the need for comprehensive personal financial planning (PFP) is well grounded theoretically, although research to guide the appropriate application of the theory remains lacking.

38 citations


Journal Article
TL;DR: The CAR is defined as the ratio of investment assets to net worth as mentioned in this paper, which is a useful indicator of financial health and can provide a convenient way to diagnose the financial status of households (Greninger et al., 1996).

18 citations


Journal Article
TL;DR: For example, Bengen et al. as mentioned in this paper investigated the effect of taxes on the magnitude and variability of cash flows from taxable retirement portfolios and concluded that the 100% equity allocation generally provides the most attractive trade-off between risk and return during the retirement period.

15 citations


Journal Article
TL;DR: In this article, the authors examined how total portfolio wealth varies at different horizons and found that if the financial component of a total retirement portfolio is large compared to anticipated future contributions, then the equity allocation should be reduced (increased) to target that individual's desired risky asset allocation of total wealth.

8 citations


Journal Article
TL;DR: In this paper, the authors find that subsidized insurance reduces the incentive for a risk-neutral homeowner to purchase structural mitigation, because mitigation does not generally reduce damages to below subsidized deductibles, and if insurance premiums increase or if hurricane strike probabilities or market returns decrease, then the wealth maximizing homeowner drops insurance and purchases mitigation.

Journal Article
TL;DR: The authors examined the impact of derivative use on the risk, performance, and risk management of UK unit trusts between January 1995 and December 1997, extending an earlier US study, and found that the cross-sectional variability of a number of risk measures tends to be larger for trusts that use derivatives compared with those who do not use derivatives.

Journal Article
TL;DR: In this paper, the authors investigated the effects of financial attitudes, financial behavior, employment, and socioeconomic factors on the household net worth of employees and business owners. And they found that psychological factors such as attitude toward the use of credit and risk tolerance will influence the level of net worth and that they should be examined.

Journal Article
TL;DR: McNamee et al. as discussed by the authors survey managers of 267 U.S. companies with direct stock purchase plans to determine their reasons for establishing such plans, the factors contributing to their success in attracting investors, and their views about the future of DSPPs.

Journal Article
TL;DR: In this paper, the authors used Monte Carlo simulations to compare the risk of adjustable-rate mortgages with distributions of present value-cost differentials for a variety of mortgage life periods, and provided insight into the financial planning aspect of the choice by modeling the impact of mortgage-rate changes on the size of payments for ARMs with various initial fixed periods.

Journal Article
TL;DR: In this paper, the authors used Value at Risk (VaR) to measure downside risk over a range of asset allocations and holding periods and found that a modest amount of leverage enhances the performance of stock portfolios in the long run.

Journal Article
TL;DR: In this article, the authors investigated the relationship between the Treynor ratio and the investment horizon for portfolios of small stocks, large stocks, and bonds, and found that the treynor ratios change substantially with the holding period.

Journal Article
TL;DR: In this article, three simulations were run using Monte Carlo simulation based on historical distributions of stock and bond returns, and the simulations projected end-of-period savings under different market conditions for Model 2.

Journal Article
TL;DR: In this article, the authors provide a rigorous framework to answer these questions from the investor's perspective and conclude that unless they are concerned about creditor protection, few individuals should consider saving in an annuity.

Journal Article
TL;DR: This paper showed that the terminal cash flows from an automobile lease should be viewed as a call option and several put options, each containing different exercise prices, and that ignoring the interplay of option values at the end of the lease may lead to costly financing decisions by the consumer.

Journal Article
TL;DR: This paper showed that the cost of not participating in a Dependent Care Assistance Plan is substantially higher for most employees than the opportunity cost of lost interest on savings, even if finance charges for cash advances are necessary.