{"title":"What Persuades Equity Investors to Follow the Advice of Financial Advisors?","authors":"Shubhangi Verma, Purnima Rao, Satish Kumar","doi":"10.1002/joe.22296","DOIUrl":null,"url":null,"abstract":"<div>\n \n <p>As financial markets grow increasingly complex and uncertain, particularly in stock markets, understanding the factors that motivate investors to seek financial professionals' advice is crucial for tailoring services and enhancing client satisfaction. This study examines the motivations of Indian investors, specifically focusing on trust and expertise, to seek financial professionals' advice amid market uncertainty. We employed a quantitative research design, utilizing a survey method with snowball sampling to gather data from a diverse pool of investors, which was then analyzed using structural equation modeling-partial least squares (SEM-PLS) via SmartPLS software and word cloud visualization through Python. Our findings reveal that trust and expertise are pivotal drivers for investors to engage financial professionals in their decision-making processes. These insights contribute to the literature on investor behavior, emphasizing the significance of cultivating strong client relationships and demonstrating expertise amid a volatile and uncertain financial environment. The research provides invaluable insights for financial advisors seeking to refine their services, attract and retain clients, and face the challenges posed by the VUCA (volatile, uncertain, complex, and ambiguous) landscape of stock market.</p>\n </div>","PeriodicalId":35064,"journal":{"name":"Global Business and Organizational Excellence","volume":"44 6","pages":"5-17"},"PeriodicalIF":0.0000,"publicationDate":"2025-02-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Global Business and Organizational Excellence","FirstCategoryId":"1085","ListUrlMain":"https://onlinelibrary.wiley.com/doi/10.1002/joe.22296","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q2","JCRName":"Business, Management and Accounting","Score":null,"Total":0}
引用次数: 0
Abstract
As financial markets grow increasingly complex and uncertain, particularly in stock markets, understanding the factors that motivate investors to seek financial professionals' advice is crucial for tailoring services and enhancing client satisfaction. This study examines the motivations of Indian investors, specifically focusing on trust and expertise, to seek financial professionals' advice amid market uncertainty. We employed a quantitative research design, utilizing a survey method with snowball sampling to gather data from a diverse pool of investors, which was then analyzed using structural equation modeling-partial least squares (SEM-PLS) via SmartPLS software and word cloud visualization through Python. Our findings reveal that trust and expertise are pivotal drivers for investors to engage financial professionals in their decision-making processes. These insights contribute to the literature on investor behavior, emphasizing the significance of cultivating strong client relationships and demonstrating expertise amid a volatile and uncertain financial environment. The research provides invaluable insights for financial advisors seeking to refine their services, attract and retain clients, and face the challenges posed by the VUCA (volatile, uncertain, complex, and ambiguous) landscape of stock market.
期刊介绍:
For leaders and managers in an increasingly globalized world, Global Business and Organizational Excellence (GBOE) offers first-hand case studies of best practices of people in organizations meeting varied challenges of competitiveness, as well as perspectives on strategies, techniques, and knowledge that help such people lead their organizations to excel. GBOE provides its readers with unique insights into how organizations are achieving competitive advantage through transformational leadership--at the top, and in various functions that make up the whole. The focus is always on the people -- how to coordinate, communicate among, organize, reward, teach, learn from, and inspire people who make the important things happen.