Elisabetta Basilico

Jan 2, 2024 | alphaarchitect.com | Elisabetta Basilico

This paper aims to shed light on the underrepresentation of Black and Hispanic households in financial planning services and provide insights into the barriers that may exist, with a particular emphasis on the role of trust in seeking financial advice. Additionally, the paper seeks to examine the interplay between risk tolerance, financial literacy, and trust and their collective impact on financial advice-seeking behavior.

Dec 19, 2023 | alphaarchitect.com | Elisabetta Basilico

The study emphasizes the importance of integrating machine learning with other tools for investment managers, pension-plan administrators, financial advisors, and independent analysts to help investors select active mutual funds with positive alpha. It also highlights the significance of fund characteristics in predicting alpha, even when portfolio holdings are not disclosed.

Dec 4, 2023 | alphaarchitect.com | Elisabetta Basilico

The article discusses the importance of integrating psychology into the field of financial planning and highlights the need to understand and address the psychological aspects of financial decision-making and client relationships. Bradley T. Klontz, Psy.D., CFPJournal of Financial Planning, January 2023A version of this paper can be found hereWant to read our summaries of academic finance papers?

Nov 20, 2023 | alphaarchitect.com | Elisabetta Basilico

The article introduces a concept called “impact elasticity,” which measures how a firm’s environmental impact changes in response to shifts in its cost of capital (the “E” in “ESG”). It finds that the dominant sustainable investing strategy, which favors green firms and punishes brown firms by altering their cost of capital, can be counterproductive. Hartzmark and ShueWorking paperA version of this paper can be found hereWant to read our summaries of academic finance papers?

Nov 6, 2023 | alphaarchitect.com | Elisabetta Basilico

This paper focuses on “organization capital,” representing intangible assets in a firm’s key employees that is not captured by classic value measures such as book-to-market. The authors propose a structural model to analyze the impact of organizational capital on asset prices and argue that shareholders perceive firms with high levels of organizational capital to be riskier than those with more physical capital.