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Welcome to the 2017 AFS Annual Meeing, being held this year, in conjunction with FPA in Nashville!
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Saturday, September 30
 

8:00am

Welcome from the AFS President

It is my pleasure to welcome you to the 2017 Academy of Financial Services Annual Meeting, the 32nd anniversary of the AFS. Each year we gather at this conference due to our common interest in the teaching and the practice of financial planning and financial services, as described in our mission statement:

  • To encourage basic and applied research in the area of personal financial planning and financial services
  • To encourage the development of the curricula in the financial services field at the university level
  • To encourage interaction between financial services professionals and academicians

This year many new and exciting things have happened to the conference and to the AFS. In an effort to better link the world of academics and practitioners, the AFS and the Financial Planning Association (FPA) have worked diligently to integrate our respective conferences into a single, cohesive event. The second day of the AFS conference (Monday October 2) is the first day of the FPA conference. AFS registrants can attend both AFS and FPA sessions on that day. Likewise, FPA registrants can attend both FPA and AFS sessions that day.

You will find many AFS and FPA members who have taken advantage of a significant discount to register and attend the complete AFS and FPA programs. On Monday morning, we begin the AFS day by joining the opening general session of the FPA Conference. If you’re staying at one of the four FPA conference hotels, you are in easy walking distance to AFS’s Sunday program at the Omni Hotel and Monday at the Music City Center.

A successful conference does not just happen - it takes a lot of planning and hard work. I would like to take this opportunity to thank to Dr. Swarn Chatterjee, Executive VP – Program, for his efforts in constructing a very impressive program. I would also like to thank Dr. Ginger Phillips and Jennifer Bijaczyk of Arden Solutions. Not only have they put together great local arrangements, working along with FPA, but they also re-designed the AFS website. For those of you who have previously attended an AFS conference, you probably noticed the ease of registration this year compared to the past. In addition, Dr. David Nanigian, VP-Communications, Dr. Chris Browning, VP-Marketing, and Dr. Tom Langdon, VP-Finance, were a big help along the way.

For the AFS in general, thanks to Dr. Stuart Michelson, Editor of Financial Services Review, for his dedication and hard work on the journal. Also, a special thank you to two long serving AFS board members. Dr. Halil Kiymaz, a past president and current director, along with Dr. Claire Matthews, VP-International Relations, are leaving the board at the conclusion of the conference. We thank them for their many years of support and hard work.

 Finally, we appreciate member support and wish you an enjoyable stay in Nashville.

Thank you,

Robert W. Moreschi, Ph.D.
AFS President 2016-2017
Virginia Military Institute – Department of Economics & Business


Saturday September 30, 2017 8:00am - 11:30pm
N/A

1:00pm

Board Meeting
AFS Officers and Directors ONLY

Saturday September 30, 2017 1:00pm - 5:00pm
Mockingbird 1

5:00pm

Registration Desk Open
Saturday September 30, 2017 5:00pm - 8:00pm
Mockingbird Prefunction

6:00pm

Board Dinner
AFS Officers and Directors ONLY

Saturday September 30, 2017 6:00pm - 8:00pm
Mockingbird 2
 
Sunday, October 1
 

6:59am

7:00am

Continental Breakfast
Sunday October 1, 2017 7:00am - 8:00am
Cumberland 5-6

8:00am

A1a Using a Comprehensive Final Project in Introductory Undergraduate Finance [CFP Pedagogy]
By implementing a comprehensive final project in an introductory undergraduate finance course students are able to pull knowledge from the entire semester to make an informed decision on whether to accept a project based on NPV analysis. This project has elements of reading financial statements, calculating the WACC, and understanding cash flows. It also forces students to determine whether to accept or reject a project based on differing interest and growth rates. Because not all of the students taking the course are finance majors, the hope is all students obtain a stronger understanding of NPV, capital budgeting, and project analysis.

Author(s): Philip Stuczynski, Brian Boscaljon, Ph.D., Richard Hedderick

Presenters
PS

Philip Stuczynski

Lecturer of Finance, Penn State Erie - The Behrend College


Sunday October 1, 2017 8:00am - 8:50am
Mockingbird 1

8:00am

A1b Disassembling the Replacement Analysis in Capital Budgeting: A Teaching Note [CFP Pedagogy]
When teaching capital budgeting, specifically the analysis with regard to replacement projects, there comes a point when the instructor has to explain why the market value of the old machine is recognized, as is the continued depreciation on the old machine.  Typically, the response is, “Well we want to capture the true effect of replacing the old machine and its true impact.”  This paper disassembles the analysis into the sale of the old machine and the purchase of the new project separately to help clarify the process to students.

Author(s): Cris de la Torre, Ph.D., Amber Lemmon

Presenters
avatar for Cris de la Torre, Ph.D.

Cris de la Torre, Ph.D.

Professor of Finance, University of Northern Colorado


Sunday October 1, 2017 8:00am - 8:50am
Mockingbird 1

8:00am

A2a Financial Capability: Literacy, Behavior, and Distress
This article examines financial literacy and financial behavior on experiencing financial distress.

Author(s): Janine K. Scott, PhD, Nguyễn Vũ Nghĩa

Presenters
avatar for Janine K. Scott, PhD

Janine K. Scott, PhD

Director, Financial Planning & Senior Lecturer, Massey University


Sunday October 1, 2017 8:00am - 8:50am
Mockingbird 2

8:00am

A2b Budgeting and Financial Capability: A Perspective of Behavioral Hierarchy
Budgeting is an important step in financial planning and counseling. Budgeting behavior is considered a desirable financial behavior to indicate consumer financial capability. However, systematic research on budgeting behavior with a large scale national sample is limited. The purpose of this study was to address this research gap and examine characteristics of budgeting behavior from the perspective of the behavioral hierarchy. The assumption holds that consumer financial behaviors may be performed in a hierarchical manner along with an increase of economic resources. Using data from the 2015 National Financial Capability Study, evidence suggests that budgeting behavior is at the lower end of the behavioral hierarchy. This finding has implications for consumer financial planning and counseling.

Author(s): JingJian Xiao, Ph.D, Barbara M. O'Neill, Ph.D.

Presenters
avatar for Barbara O'Neill

Barbara O'Neill

Professor, oneill@aesop.rutgers.edu


Sunday October 1, 2017 8:00am - 8:50am
Mockingbird 2

8:00am

A3a Financial Literacy and Borrowing Decisions
This study investigates the impact of financial literacy on the decision to use a low-cost borrowing option by accessing retirement plans before retirement or the decision to use one or more high-cost lenders. We also study how financial literacy relates to optimal liquidity choices.

Author(s): Terrance Martin, Jr, Ph.D., MBA, Philip Gibson, Ph.D., Janine K. Scott, Ph.D.

Presenters
TM

Terrance Martin, Jr., Ph.D., MBA

The University of Texas Rio Grande Valley


Sunday October 1, 2017 8:00am - 8:50am
Mockingbird 3

8:00am

A3b Multidimensional Financial Stress: Scale Development and Relationship with Personality Traits
Despite the importance of financial stress in financial planning and financial services industry, there has not been much attention to attempt defining the financial stress in a comprehensive way. To address this gap two major goals of this study were; (a) development of financial stress scale and (b) investigation of associated personality factors with financial stress. By employing a comprehensive financial stress definition, this study demonstrated the development of a new, 24-item scale for measuring financial stress. This study found that income level and some personal traits (i.e., extraversion, neuroticism, and openness) are significantly associated with financial stress level.

Author(s): Wookjae Heo, Ph.D., Soo Hyun Cho, Phil Seok Lee, Ph.D.

Presenters
WH

Wookjae Heo

Assistant Professor, South Dakota State University


Sunday October 1, 2017 8:00am - 8:50am
Mockingbird 3

9:00am

B1a College Women and Financial Literacy: Assessing the Gender Gap [CFP The Future of the Financial Planning Profession]
This study analyzes whether the documented gender gap in financial literacy also exists among men and women of college age. It further explores factors effecting financial literacy levels, including choice of college major, family engagement, and prior financial exposure. The impact of subjective and objective assessments of individuals’ financial literacy is correlated with their money behaviors and confidence levels. By providing insight on how some young women relate to financial matters and integrate finance into their lives, the findings suggest that earlier exposure to financial concepts, either through educational formats or social venues, would significantly increase young women’s financial literacy.

Author(s): Deborah Gregory, Casey Moy

Presenters
DG

Deborah Gregory

Bentley University


Sunday October 1, 2017 9:00am - 9:50am
Mockingbird 1

9:00am

B1b Why Are There So Few Women in the Financial Services Industry? [CFP The Future of the Financial Planning Profession]
Our main goal is to examine the different types of factors that might explain why females (1) do not enter and (2) do not stay in the financial services industry.  We are going to look at the following set of factors: (1) demographic (family), (2) education and experience related, (3) environment related (such as experience at prior firms and the attitude towards women at those firms), and (4) knowledge.

Author(s): Inga Chira, Laura Mattia

Presenters
IC

Inga Chira

California State University Northridge


Sunday October 1, 2017 9:00am - 9:50am
Mockingbird 1

9:00am

B2a Financial Planning for Health Care Expenditures in Retirement
It is widely accepted that financial planning for retirement is deemed wise and essential to maintain an equally sound financial quality of life post-career. However, retirement health care planning and long-term care planning do not receive similar accolade. A comprehensive financial plan should not only include a path to wealth strategies, it should also account for the potential expenses related to health care coverage and long-term care coverage. This paper posits that the likelihood of an individual who has considered retirement health care planning or considered long-term care planning increases when receiving financial advice from a professional financial planner. Such findings are confirmed by means of a robust survey study encompassing a representative sample.

Author(s): William Lance Hocutt, M.S., CRPC®

Presenters
avatar for William Lance Hocutt

William Lance Hocutt

Student, Texas Tech University PFP
20 year practitioner and current Ph.D. Student at Texas Tech University


Sunday October 1, 2017 9:00am - 9:50am
Mockingbird 2

9:00am

B3a Testing the Associations Among Macroeconomic, Social Support, and Biopsychosocial Variables and Financial Risk Tolerance
The purpose of this study was to expand the financial risk tolerance literature by testing the associations between macroeconomic variables and financial risk tolerance and country level social support and financial risk tolerance.

Author(s): John Grable, Ph.D., Stephen Kuzniak

Presenters
avatar for John Grable

John Grable

Professor, University of Georgia
We provide leading-edge teaching, research and outreach that improves the economic well-being for families, increases the quality of life in communities and prepares future leaders and entrepreneurs.Our graduates are entrepreneurs, financial planners, consumer journalists, community developers, and property managers. Our students learn application-based skills to work with people in the real... Read More →


Sunday October 1, 2017 9:00am - 9:50am
Mockingbird 3

9:00am

B3b Risk Capacity - Misunderstood and Misapplied
Regulators worldwide list factors to be considered in determining a client's "investor profile". These usually include tolerance, time horizon, knowledge or experience, risk capacity and more. Risk Capacity is generally considered to be the ability of a consumer to deal with the downside risk of investing - do they have debt or fixed payments required, do they have pensions contributing to the goals etc? Common belief is that when a client has lower "capacity", the appropriate course of action is recommending a more conservative portfolio with lower volatility and hence downside exposure. This research explores how this common approach is flawed.

Author(s): Shawn Brayman

Presenters
avatar for Shawn Brayman

Shawn Brayman

President & CEO, PlanPlus Inc.
PlanPlus is a global (50+ countries), multi-lingual, multi-jurisdictional online planning software. There is a free access version for students and academics. Shawn is a planner, founder of PlanPlus and has been published in a several academic Journals. He was winner of the FPA... Read More →


Sunday October 1, 2017 9:00am - 9:50am
Mockingbird 3

10:00am

Break
Sunday October 1, 2017 10:00am - 10:30am
Mockingbird Prefunction

10:00am

Wiley Focus Group (By Invitation Only ) - Exploring the Best Learning Structure for the Needs of Today's Financial Literacy Student
--BY INVITATION ONLY--

What do you think would motivate your students to learn the course materials both inside and outside the classroom?  The Wiley Finance team would like your feedback on what is the best learning process for your students. Please join us and help us determine how to meet the needs of today’s financial literacy student.


Sunday October 1, 2017 10:00am - 11:15am
Gibson Boardroom

10:30am

C1a Advising Privately Business Owners Industry Specific Selling Factors [CFP Estate Planning]
The wave of baby boomers exiting their businesses can put a lot more pressure on basic supply and demand in the M&A market. It is estimated that 3.8 million baby boomers will exit their businesses by 2032 (McMann 2012). This huge amount of supply will downward pressure the fair market value. This unfavorable outcome may hamper business owners’ retirement lifestyles if there is a limited amount of other retirement resources. Business equity is the largest asset of a business owner’s overall net worth. However, business equity has not been treated as an investable asset.

Author(s): Chia-Li Chien, Ph.D. candidate, CFP®, PMP®

Presenters
avatar for Chia-Li Chien, CFP®, PhD candidate

Chia-Li Chien, CFP®, PhD candidate

Succession Strategist, Program Director, Value Growth Institute
Chia-Li Chien, PhD candidate, CFP®, PMP®; Chia-Li “like JOLLY,” Succession Strategist of Value Growth Institute, dedicated to helping private business owners increase their company equity value. She is the award-winning author of the books Show Me The Money and Work toward... Read More →


Sunday October 1, 2017 10:30am - 11:20am
Mockingbird 1

10:30am

C1b Racial/Ethnic Disparities in High Return Investment Ownership: A Heckman Selection Model [CFP Estate Planning]
This study investigates racial/ethnic differences in high return investment ownership. Since households without adequate financial assets might not be able to meaningfully make investment choices, a Heckman two-stage selection model was used to separate minimum asset level status from the allocation decision. Conditional on having financial assets greater than 3 months of household income, White households were more likely to invest in high return investments than minority (Black, Hispanic and Asian/other) households. Government policies or strategies that could possibly nudge households to invest some wealth in high return investment assets would benefit U.S. households, especially minority households.

Author(s): Guangyi Wang, Sherman D. Hanna

Presenters
avatar for Guangyi Wang

Guangyi Wang

Research Assistant, Ohio State University


Sunday October 1, 2017 10:30am - 11:20am
Mockingbird 1

10:30am

C2a The Impact of Shared Decision-Making on Overconfidence: The Financial Planning Challenge and Opportunity
Building on findings related to metaknowledge and the positive effects of feedback, the present study examines the impact of shared financial decision-making on overconfidence in three contexts. First, we examine the impact of sharing financial decision-making with someone else in your household, most often a spouse. Second, we examine the impact of sharing financial decision-making with a professional financial advisor, where sharing ranges from asking for advice to handing off the decision. Finally, we examine the impact of sharing decision-making within the household and with a professional financial advisor.

Author(s): Dee Warmath, Ph.D., Dominik Piehlmaier, Cliff A. Robb, Ph.D.

Presenters
DW

Dee Warmath

Assistant Professor, University of Wisconsin-Madison


Sunday October 1, 2017 10:30am - 11:20am
Mockingbird 2

10:30am

C2b Why Are Americans Uncomfortable Spending from their Retirement Portfolio? Evidence from a Survey on Retirement Risk Tolerance
There is a lot of debate about the retirement preparedness of Americans. Despite the debate, many recent studies have found that American’s spend very conservatively in retirement, and in a lot of cases continue to save. Using proprietary data from a survey on retirement risk tolerance, this study explores explanations for such conservative attitudes towards spending. Perceived preparedness, preferences for risk and spending, and expectations for medical costs and longevity are considered. Preferences for risk and spending show consistently strong relationships with spending discomfort, while perceived preparedness, income, wealth, and estimated longevity are not significant.

Author(s): Chris Browning, Ph.D.

Presenters
avatar for Chris Browning

Chris Browning

Assistant Professor, Texas Tech University


Sunday October 1, 2017 10:30am - 11:20am
Mockingbird 2

10:30am

C3a The Financial Life of a Veterinarian
Student loans have received a lot of attention in the popular press and in the research literature, but much of the attention is focused on undergraduate costs and benefits (see Oreopoulos & Petronijevic, 2013; Oreopoulos & Salvanes, 2011) and undergraduate investment choices (Heckman & Montalto, 2016). We extend the research literature by (a) reviewing the unique characteristics and risks facing veterinarians, (b) examining how students decide to pursue veterinarian medicine, and (c) comparing the financial wellness of prospective and current veterinary students to a general student population at a Midwestern university.

Author(s): Sonya Britt-Lutter, Ph.D., CFP®, Stuart J. Heckman, Ph.D., CFP®

Presenters
avatar for Stuart J. Heckman

Stuart J. Heckman

Assistant Professor, sheckman@ksu.edu


Sunday October 1, 2017 10:30am - 11:20am
Mockingbird 3

10:30am

C3b Charitable Behavior: Christian Beliefs that Explain Donor Intentions
A serious problem facing the United States is the number of individuals at the official poverty level. Government programs and non-profit organizations provide assistance. Governments depend on tax revenues while non-profit organizations depend on donations to fund operations. Continuous funding is critical for these help-centered organizations to pursue their mission. In order for non-profit organizations to attract donations to deliver needed services during good times and bad, it is important to understand the motivation for charitable giving. The purpose of the current research is to aid in the explanation of the factors that influence individuals’ donating intentions to non-profit organizations.

Author(s): Stephen C. Poplaski

Presenters
SC

Stephen C. Poplaski

Johnson & Wales University


Sunday October 1, 2017 10:30am - 11:20am
Mockingbird 3

11:30am

D1a Investment Strategies and FOMC Rate Decisions [CFP Fixed Income]
This paper furthers the research into portfolio allocation decisions around FOMC announcements.  Given publicly available information, such as FOMC rate decisions, is it possible to apply simple trading rules to generate excess returns?   We document the historical returns available to investors employing simple trading rules and optimized portfolio allocation weights for various levels of investor risk tolerance informed by FOMC rate decisions.  If such trading strategies prove profitable, then this information is extremely valuable to individual investors and others who have the flexibility to vary their investment allocations between debt and equity securities across time.

Author(s): Peter M. Basciano, Ph.D., Jim Grayson, Christopher L. Cain, Ph.D.

Presenters
PM

Peter M. Basciano, Ph.D.

Associate Professor of Finance, Augusta University


Sunday October 1, 2017 11:30am - 12:20pm
Mockingbird 1

11:30am

D1b Bond ETFs and Price Volatility of Underlying Securities [CFP Fixed Income]
ETFs may be preferred over direct investment in illiquid securities, e.g. bonds, as ETFs can provide insurance, diversification and simplified way of investing in such assets. However, demand volatility for bond ETFs may distort prices and raise price volatility of underlying securities. This may lead to investors facing a tradeoff between investing in bond securities through ETFs versus choosing bonds not associated with ETFs. We find that the level of ETF ownership in corporate bonds has a negative association with bond return volatilities and bond return. This can be due to liquidity improvement of the bonds held by ETFs through the price discovery function provided by the ETF market. However, we document a non-linear V-shape relation between the bond level ETF flows and return volatility of underlying securities, and a positive linear relation between ETF flows and bond returns. In multivariate analysis, unsigned net ETF flows to a bond are positively related to bond return volatility, and ETF flows are positively related to bond returns. This result is consistent with the prediction that demand pressure in the bond ETF market translates into higher return volatility of underlying bonds, and increased (decreased) return level of underlying bonds as positive (negative) shocks to the capital flows to ETFs holding the bonds occur.

Author(s): Nikanor Volkov, Anna Agapova, Ph.D.

Presenters
NV

Nikanor Volkov

Mercer University


Sunday October 1, 2017 11:30am - 12:20pm
Mockingbird 1

11:30am

D2a Retirement Income Literacy: The Key To Unlocking Sustainable Retirement Planning for Americans?
Retirement income literacy rates are shocking low for Americans nearing and in retirement. Recent research shows how poor literacy rates are connected to certain demographic traits. Higher literacy rates are also linked to better retirement planning. For do-it-yourselfers, a degree of retirement income literacy is required to make educated and informed decisions. For those working with a financial advisor, they will be more likely to make sound decisions that they take ownership in and feel good about. The results of this survey and research serve as an alarming and stark reminder of the need for increased retirement income literacy.

Author(s): Jamie Hopkins

Presenters
JH

Jamie Hopkins

Professor, The American College


Sunday October 1, 2017 11:30am - 12:20pm
Mockingbird 2

11:30am

D2b Measuring the Impact of Dynamic Tax-Loss Harvesting on Portfolio Returns
Tax-loss harvesting (TLH) has been shown to be a source of alpha for separately managed accounts in previous studies.  This study builds on this literature by looking at the performance of a pre-defined portfolio objective using various TLH strategies.  Specifically, we compare the performance of a portfolio that harvests monthly with portfolios that only harvest at the end of the year or follow a buy and hold strategy.  Results provide guidance to money managers on the best practices for TLH.

Author(s): John Clark, Stephen Riley, Richard Furmanski

Presenters
JC

John Clark

University of Missouri - Kansas City


Sunday October 1, 2017 11:30am - 12:20pm
Mockingbird 2

11:30am

D3a The Effects of Risk Aversion on the Life Insurance Ownership of Single-Parent Households
The objective of this paper was to investigate how risk aversion affected the ownership of life insurance, for single-parent households with at least one child under 18. We found that the likelihood of owning a term policy decreased as risk aversion increased, but the likelihood of owning a cash-value policy increased as risk aversion increased. Smokers were less likely to own term life insurance but more likely to own cash value life insurance than comparable non-smokers. The likelihood of owning life insurance increased with the amount of financial assets, suggesting financial assets were not considered a substitute for life insurance.

Author(s): Sarah Youngwon Nam, Sherman D. Hanna

Presenters
avatar for Sarah Youngwon Nam

Sarah Youngwon Nam

Ph.D. Student, The Ohio State University


Sunday October 1, 2017 11:30am - 12:20pm
Mockingbird 3

11:30am

D3b A Dynamic Model of Insurance Markets: Catastrophes, Cycles, and Capacity Constraints
In the property-liability insurance market, sharp price increases and large capacity swings follow catastrophic losses. A dynamic model of cash flows for an insurer is constructed to study the existence of underwriting cycle. The model shows that the effect of a one-time catastrophic shock could spread and amplify over time by the dynamic interaction between underwriting and capital structure. It indicates this dynamic interaction can generate the non-cyclical behavior of output changes under a series of catastrophic shocks. The paper also demonstrates that the changes in output markets are large with volatile shock, tight external capital market, and relaxed regulation.

Author(s): Ning Wang

Presenters
avatar for Ning Wang

Ning Wang

Assistant Professor of Finance, University of North Georgia


Sunday October 1, 2017 11:30am - 12:20pm
Mockingbird 3

12:30pm

Keynote Presentations, Business Meeting, and Luncheon
Luncheon including Awards for Best Papers, Annual Business Meeting, and keynote presententations by FPA® CEO Lauren Schadle and 2016 FPA® President Shannon Pike.

Presenters
avatar for Swarn Chatterjee

Swarn Chatterjee

Program Chair 2017, Academy of Financial Services
Associate Professor | University of Georgia
avatar for Robert Moreschi

Robert Moreschi

President, Academy of Financial Services
President, Academy of Financial Services | John and Jane Roberts Institute Professor of Free Enterprise Business | Head, Department of Economics and Business | Colonel - Virginia Militia | Virginia Military Institute
avatar for Shannon Pike

Shannon Pike

Vice President, and FPA Board President, Tanglewood Legacy Advisors and FPA
Shannon J. Pike, CFP®, currently serves on the board of directors as the 2016 President-elect​ for the Financial Planning Association® (FPA®), the largest membership organization for CFP® professionals in the country, and includes many others who support the financial planning process.Pike is Vice President at Tanglewood Legacy Advisors, LLC in Houston, TX, an independent firm which develops unique private wealth planning as well as investment strategies and exit planning services to entrepreneurs, executives and private business owners... Read More →
avatar for Lauren M. Schadle

Lauren M. Schadle

Executive Director and CEO, Financial Planning Association
Lauren M. Schadle, CEO, is the executive director and chief executive officer for the 23,000+/- member Financial Planning Association® (FPA®). In this role, she oversees all of the organization’s member-focused operational and strategic efforts. She has worked in the association and not-for-profit sector since 1989. Prior to assuming the CEO role in October 2012, Schadle had been... Read More →


Sunday October 1, 2017 12:30pm - 2:20pm
Cumberland 5-6

2:30pm

E1a Do Investors' Subjective Risk Perceptions Influence Their Portfolio Choice? A Household Bargaining Perspective [CFP Asset Allocation]
Using the 2012 wave of the Health and Retirement Study, this paper finds that individual investors view the stock market to be much riskier than it actually is according to objective measures. This paper also finds that the subjective risk perception of the household member with more bargaining power has a significant negative effect on the allocation of the household portfolio to risky assets and that the subjective risk perception of the household member with less bargaining power has no significant effect on the allocation of household portfolio to risky assets, controlling for demographic and other factors.

Author(s): Xianwu Zhang, Charlene Kalenkoski, Ph.D.

Presenters
avatar for Xianwu (Sean) Zhang

Xianwu (Sean) Zhang

Research Assistant, Texas Tech University
I am a Ph.D. student in PFP in Texas Tech University. I have a master in finance and statistics. I pass CFA II in June 2016. My research topics are factor investing, mutual fund, SMA and retirement.


Sunday October 1, 2017 2:30pm - 3:20pm
Mockingbird 1

2:30pm

E1b Is Time Segmentation a Superior Investing Strategy for Retirement? [CFP Asset Allocation]
It is difficult to argue that time segmentation by itself provides a superior investing strategy for retirees. The superior results it may show appear to be attributed to the dynamic asset allocation that results from coupling the critical path to a time segmentation strategy to create a personalized rolling ladder. However, the results are nearly equivalent for a total returns approach with the same matching dynamic asset allocation. That suggests that the more aggressive asset allocation is primarily responsible for the overperformance.

Author(s): Wade Pfau

Presenters
avatar for Wade Pfau

Wade Pfau

Professor of Retirement Income, The American College
Wade D. Pfau, Ph.D., CFA, is a Professor of Retirement Income in the Ph.D. program for Financial and Retirement Planning at The American College in Bryn Mawr, PA. He also serves as a Principal and Director for McLean Asset Management and Chief Planning Strategist of software provider inStream Solutions. He holds a doctorate in economics from Princeton University and publishes frequently in a wide variety of academic and practitioner research journals on topics related to retirement... Read More →


Sunday October 1, 2017 2:30pm - 3:20pm
Mockingbird 1

2:30pm

E2a Variation of Mutual Fund Flow and Return Relationship Among Distribution Channels
This study analyzing how different it is among distribution channels for the relationship between mutual fund flows and recent returns. We confirmed that retail channel favors raw return while institution channels favor risk-adjusted returns.

Author(s): Yuanshan Cheng, Ph.D., Tao Guo, Philip Gibson

Presenters
avatar for Yuanshan (Jimmy) Cheng

Yuanshan (Jimmy) Cheng

Assistant Professor, Winthrop University
Jimmy Cheng is an Assistant Professor of Finance at Winthrop University. He earned his doctoral degree from Texas Tech University. Jimmy is from China and worked for Morningstar Asia for several years. He found his interest in financial planning and decided to get an advanced deg... Read More →


Sunday October 1, 2017 2:30pm - 3:20pm
Mockingbird 2

2:30pm

E2b Teaching Financial Technology (FinTech) to Undergraduates Finance Majors
The financial industry depends on technology; and has so for decades. No security is traded, no currency swapped, no asset changes ownership without the use of technology. Yet, the reality is much of the technology employed is seriously dated. The industry is now awakening to the challenge of other cheaper, better, and faster technologies. What pedagogical decisions shape teaching technology to millennial undergraduate finance majors? What does the word “technology” even mean in an era of virtual reality, big data, and artificial intelligence? We suggest a direction based on three years of experience in the classroom and three decades on Wall Street.

Author(s): Elven Riley, BS

Presenters
avatar for Elven Riley

Elven Riley

Director / Instructor, Seton Hall Univeristy
Digital Transformation for 30 Yr in NYC bulge bracket Sell Side firms disrupting the full Front-Middle-Back Office order/trade processes, now teaching FinTech to finance majors.



Sunday October 1, 2017 2:30pm - 3:20pm
Mockingbird 2

2:30pm

E3a CANCELLED The Behavioral Relationship Between Personality Type and Investor Risk Preferences
In this study, a sample of 658 participants completed the MBTI and the Neo-PI-R an inventory that measures the Big Five personality traits of Neuroticism, Extroversion, Openness, Agreeableness and Conscientiousness. The results indicate a significant positive relationship of a risk tolerance with MBTI factors of Extroversion, Intuitive, and Perceiving and a significant negative relationship risk tolerance with MBTI of Introversion, Sensing, and Judging. The following NEO factors are associated with a positive relationship with risk tolerance measure: Extroversion, Agreeableness, and Openness. These results provide important information that profoundly adds to the body of literature on risk tolerance and personality type.

Author(s): Stuart Michelson

Presenters
avatar for Stuart Michelson

Stuart Michelson

Professor of Finance, Stetson University


Sunday October 1, 2017 2:30pm - 3:20pm
Mockingbird 3

2:30pm

E3b The Value of a Gamma-Efficient Portfolio
This paper quantifies the potential benefits of implementing a truly efficient portfolio strategy for an investor through a comprehensive framework based on seven questions an investor must consider during the portfolio construction process. Based on our empirical tests and existing research we estimate that while the potential benefits associated with making better portfolio decisions will vary by investor, the “average” investor is likely to benefit significantly from working with a financial advisor, so long as the advisor provides comprehensive, high quality portfolio services for a reasonable fee.

Author(s): David Blanchett, Ph.D.

Presenters
DB

David Blanchett, Ph.D.

Head of Retirement Research, Morningstar Investment Management


Sunday October 1, 2017 2:30pm - 3:20pm
Mockingbird 3

3:30pm

F1a Income Portfolios and Liability-Driven Investing [CFP Defined Contribution Plans]
In this paper, we provide insight to the creation of appropriate asset allocations for individual investors seeking to fund retirement. We pay specific attention to the soft nature of the retirement liability since a retiree has flexibility over the timing and amount of withdrawals and/or payment of expenses, which is different from the liability of a defined-benefit pension plan which is a legal (i.e., hard) liability. We provide thoughts on how to model the systematic characteristics of this soft liability and demonstrate how portfolios constructed using a liability-relative optimization approach differ significantly from those based on asset-only optimization techniques.

Author(s): David Blanchett, Ph.D.

Sunday October 1, 2017 3:30pm - 4:20pm
Mockingbird 1

3:30pm

F1b Information Presentation and 401(k) Plan Choices [CFP Defined Contribution Plans]
The authors performed an experiment in which some new employees (1 year or less) were provided complete (and lengthy) information about a 401(k) plan and asked to make choices about enrollment, contributions, and investment allocations. Other new employees were provided much briefer, tabular presentation of the plan information as well as some recommendations, and were asked to make these same choices. As expected, briefer presentation with recommendations improved participants' plan choices. Employees should be provided with a "cheat sheet" for making 401(k) plan choices.

Author(s): Charlene Marie Kalenkoski, Ph.D., CFP®, Eric Cardella, Ph.D., Michael Parent, Ph.D.

Presenters
CK

Charlene Kalenkoski, Ph.D.

Professor and Director of the Ph.D. Program in Personal Financial Planning, Texas Tech University


Sunday October 1, 2017 3:30pm - 4:20pm
Mockingbird 1

3:30pm

F2a CANCELLED KiwiSaver: The First Ten Years
With the arrival of the tenth anniversary of KiwiSaver it is an opportune time to review the scheme, and consider how successful it has been to date.   This paper explores the launch and development of KiwiSaver over the last ten years.

Author(s): Claire Matthews

Presenters
avatar for Claire Matthews

Claire Matthews

Director, Academic Programmes, Massey University


Sunday October 1, 2017 3:30pm - 4:20pm
Mockingbird 2

3:30pm

F2b Who Fires Their Financial Planner?
The purpose of this study was to identify characteristics of individuals who have previously terminated a relationship with a financial planner, paying attention to the receipt of an inheritance as a separation trigger. It was hypothesized that in addition to receiving an inheritance (which may free an heir to pursue financial planning services with another firm or a ‘robo’ advisor) other issues may consistently point to a breakage in the client-financial planner relationship.

Author(s): Michelle Kruger, Martha Fulk, John Grable, Kimberly Watkins, MS

Presenters
avatar for Michelle Kruger

Michelle Kruger

University of Georgia
Michelle Kruger is a PhD student with a concentration in Financial Planning at the University of Georgia (UGA). She graduated magna cum laude with a BBA in Finance from the Terry College of Business at UGA in 2015. Her research interests include spending behavior, financial planning interventions, risk tolerance, financial stress, and behaviors associated with building wealth. In addition to her graduate studies, Michelle works as a research assistant at the Financial Planning Performance Lab at UGA, the... Read More →


Sunday October 1, 2017 3:30pm - 4:20pm
Mockingbird 2

3:30pm

F3a An Empirical Evaluation of Dynamic vs. Static Withdrawal Strategies: It’s a Dynamic Small World After All
This study compares simple dynamic withdrawal strategies with the static withdrawal method, examining not only failure rates and ending wealth but also spending. In addition, the use of small company stocks in place of large company stocks is investigated. Results indicate that use of small stocks is superior to using large stocks in the portfolios. When U.S. historical stock returns are adjusted downward, there is the potential for some dynamic strategies to not ensure income for life. This paper demonstrates that the simplest dynamic strategy is superior to two popular dynamic strategies.

Author(s): Ken Johnston, John Hatem

Presenters
KJ

Ken Johnston

Associate Professor of Finance, Berry College


Sunday October 1, 2017 3:30pm - 4:20pm
Mockingbird 3

3:30pm

F3b Exposure to Commodities - Should you buy the asset or the company?
We compare the return performance of commodities in general with exchange-traded products designed to replicate the performance of overall commodities. More generally, we break commodities down into their subgroups and compare each subgroup to an equally-weighted basket of stocks from the producer of the commodity subgroup. In both comparisons, ignoring transactions costs and taxes, we find that an investor is almost always better off investing in the financial product as opposed to the commodity. The uploaded version has performance through 2013. The presented paper in October will include full results through 2016.

Author(s): Jeff Smith, Ph.D.

Presenters
JS

Jeff Smith, Ph.D.

Associate Professor of Economics and Finance, VMI


Sunday October 1, 2017 3:30pm - 4:20pm
Mockingbird 3

4:29pm

Poster Session and Reception hosted by Wiley
Thank you to our Sponsor Wiley for hosting this reception. Do not forget your drink ticket!


Sunday October 1, 2017 4:29pm - 6:00pm
Cumberland 1-2

4:30pm

P01 Will Pro Bono as Continuing Education credits enhance CFP as a profession in extending social contracts?
Certified Financial Planner or CFP® is a young profession compared to the legal profession. The legal profession has 139 years of history. To meet legal professional competencies in the Code of Ethics, the legal profession is required to complete a maximum of ten Continue Learning Education hours in pro bono activities every two years. In contrast, the CFP® profession has 32 years of history and does not require pro bono activities as continuing education credits to meet competency in the Codes of Ethics and using pro bono to create social contracts.

Author(s): Chia-Li Chien, Ph.D. candidate, CFP®, PMP®

Presenters
avatar for Chia-Li Chien, CFP®, PhD candidate

Chia-Li Chien, CFP®, PhD candidate

Succession Strategist, Program Director, Value Growth Institute
Chia-Li Chien, PhD candidate, CFP®, PMP®; Chia-Li “like JOLLY,” Succession Strategist of Value Growth Institute, dedicated to helping private business owners increase their company equity value. She is the award-winning author of the books Show Me The Money and Work toward... Read More →


Sunday October 1, 2017 4:30pm - 6:00pm
Cumberland 1-2

4:30pm

P02 Making Cents out of Early Investments in Human Capital: An Empirical Analysis
Do human capital investments in middle school impact income as an adult? Human capital theory examines an individual’s economic value, how to increase that value, and when the return on the investment in human capital no longer exceeds the investment cost (Becker, 1985). The purpose of this study is to investigate the potential impact of human capital investments beyond what is legally required for youth in the Unites States of America. Using longitudinal data from the National Longitudinal Study of Youth 1997, this study examined time spent as a youth on human capital and the adult income of those youths. Human capital investments outside of the classroom were measured by the minutes youths spent reading for pleasure, taking extra lessons, or watching television. In addition to annual income as an adult, the educational attainment level and marital status of the youths along with parental education levels and other demographics were examined to provide a clear picture. The data was analyzed using OLS regression to assess the impact of early human capital investments on income.

Author(s): Rich Stebbins, Stuart J. Heckman, Ph.D., CFP®

Presenters
avatar for Rich Stebbins

Rich Stebbins

Instructor, University of Alabama
Richard Stebbins started his career working in the financial planning profession at a boutique firm specializing in college professors. His clients inspired him to pursue a career in academia and he has been sharing what he has learned with students for over a decade. He has writ... Read More →


Sunday October 1, 2017 4:30pm - 6:00pm
Cumberland 1-2

4:30pm

P03 The Change in FX Liquidity: Funding Constraints and Global Risks as Roles of the Change
The Change in FX liquidity: Funding Constraints and Global Risks as Roles of the Change.

This paper investigates the measure of FX liquidity and determinants of the change in FX liquidity. Using 20 cross currency exchange rates over spanning period of 1999 to 2016, funding constraints and global risks are responsible for the main drivers of changing in FX liquidity, especially the change in TED spread, repos, and volatility index for both G7 and emerging countries. The magnitudes of both G7 and emerging volatility index are offsetting each other in all the regression models indicating that FX investors take diversification trading strategies to diversify their portfolios. The financial crisis provides an evidence that the more financial constraint issues contribute to the change in FX market illiquidity more than non-financial crisis period. Extending to liquidity predictability, I find, however, that the lag of market FX liquidity is responsible for the change in FX liquidity than any other explanatory variables. I also find that the excess return predictability depends highly on the average variance of currency excess returns more than other variables, including the change in liquidity.


Author(s): Phuvadon Wuthisatian

Presenters
PW

Phuvadon Wuthisatian

Ph.D. Candidate and Teaching Associate, University of New Orleans
Research: Investments, International Finance, Asset Pricing Models, Market Microstructure, Financial Market, Emerging Market and Financial Development.


Sunday October 1, 2017 4:30pm - 6:00pm
Cumberland 1-2

4:30pm

P04 Behavioral and Non-Behavioral Factors Affecting Will and Trust Ownership
This paper reviews the current literature regarding the factors that affect American adult’s will and trust adoption. It also examined the impact of the hyperbolic discounting behavioral factor on people’s estate planning decisions using the data from Health and Retirement Study.

Author(s): Zhikun Liu, Russell N James, III, JD., Ph.D.

Presenters
avatar for Zhikun Liu

Zhikun Liu

Instructor and Ph.D. Candidate, Texas Tech University
Zhikun Liu is a fourth-year Ph.D. candidate in the Personal Financial Planning Department at Texas Tech University. Prior to his study at Texas Tech, Zhikun has completed an M.S. degree in Mathematics from the University of Texas and an M.S. degree in Economics from OSU. He finis... Read More →


Sunday October 1, 2017 4:30pm - 6:00pm
Cumberland 1-2

4:30pm

P05 What Influenced the Decisions of the Households to Seek Financial Planning Services While Recovering from the Great Recession
This study examines factors related to the decision of the households to retain or get the financial planners’ service after 2009, based on their experiences with the Great Recession of 2008.

Author(s): Aman Sunder, Lance Palmer, Ph.D., MBA, CPA, Joseph W. Goetz, Ph.D., Swarn Chatterjee, Ph.D., Lini Zhang

Presenters
avatar for Aman Sunder

Aman Sunder

Ph.D. Student, University of Georgia


Sunday October 1, 2017 4:30pm - 6:00pm
Cumberland 1-2

4:30pm

P06 Are Separately Managed Accounts Efficient Investments? A comparison study with ETFs
We examined a large sample of equity SMAs and CITs (Combined separate accounts, hereafter) from 2000 to 2016. We found that combined separate accounts have much higher expenses than ETFs and do not consistently outperform ETFs in terms of gross return and net return. However, we found that combined separate accounts consistently outperform ETFs in terms of risk-adjusted gross and net return across using Fama-French 3 factor model. Additionally, we found no significant evidence that tax is proactively managed within combined separate accounts. Lastly, we found that SMAs’ performance didn't persist and outperformance of SMAs do not consistently over time.

Author(s): Xianwu Zhang, Tao Guo, Yuanshan Cheng, Ph.D., Harold Evensky, BCE, MS

Presenters
avatar for Xianwu (Sean) Zhang

Xianwu (Sean) Zhang

Research Assistant, Texas Tech University
I am a Ph.D. student in PFP in Texas Tech University. I have a master in finance and statistics. I pass CFA II in June 2016. My research topics are factor investing, mutual fund, SMA and retirement.


Sunday October 1, 2017 4:30pm - 6:00pm
Cumberland 1-2

4:30pm

P07 Household Risk Preferences and Homeownership Decisions
The recent housing crisis made many individuals and families rethink their American Dream. As with most investments, there are some risks associated with owning a home, especially when housing markets are volatile and the economy is uncertain. Understanding the relationship between risk preferences and homeownership decisions may help households make better and more informed decisions regarding their homeonwnership decisions. This study investigates the relationship between household risk preferences and homeownership decisions among young adults make during the upsurge and the decline in the housing markets. The findings may have several important implications for potential homebuyers, lenders, financial planners and counselors.

Author(s): Vincent Le

Presenters
VL

Vincent Le

Kansas State Univeristy


Sunday October 1, 2017 4:30pm - 6:00pm
Cumberland 1-2

4:30pm

P08 Trade-Off Theory and Household Capital Structure
This study tests the Trade-Off Theory of Capital Structure as applied to the household. Within this model, a household weighs the costs and benefits of debt to determine its optimal capital structure, and engages in a target-and-adjustment process over time to make their actual capital structure more closely resemble their optimal capital structure. A sample of households surveyed over multiple waves of De Nederlansche Bank (DNB) Household Survey is extracted and used to test a fixed effects model of household capital structure target and adjustment.

Author(s): David Allen Ammerman

Presenters
avatar for David Allen Ammerman

David Allen Ammerman

Financial Officer, National Academy of Sciences
As a financial officer at the National Academies in Washington, D.C., Allen works with research program directors and staff to develop proposals, manage budgets and ensure compliance with federal or other sponsor regulations. Formerly, Allen has been a business unit administrator... Read More →


Sunday October 1, 2017 4:30pm - 6:00pm
Cumberland 1-2

4:30pm

P09 Examining Personality Characteristics of the Financially Resilient
This study investigates the associations between personality characteristics and financial satisfaction among the financially resilient—i.e., those exhibiting financial satisfaction in the face of financial adversity. This study utilizes data from the 2010 and 2012 waves of the Health and Retirement Study (HRS). A three-block ordered logistic regression is utilized to evaluate relationships between personality characteristics (Big Five personality traits and affect) and financial satisfaction, after controlling for other theoretical determinants of financial satisfaction.

Author(s): Derek Tharp, Martin Seay, Ph.D.

Presenters
avatar for Derek Tharp

Derek Tharp

Ph.D. Candidate, Kansas State University


Sunday October 1, 2017 4:30pm - 6:00pm
Cumberland 1-2

4:30pm

P10 Survival Factors of Start-ups
We examine the ownership structure, governance structure, and survival rates of start-ups. We utilize data from the Kauffman Survey, which tracks a sample of firms from their inceptions through their first eight years of existence. We hypothesize that the composition of the firm's capital structure influences the governance structure of the firm.

Author(s): Jennifer Brodmann, Noura Metawa, Tarun Mukherjee

Presenters
JB

Jennifer Brodmann

PhD Candidate/ Teaching Associate, University of New Orleans


Sunday October 1, 2017 4:30pm - 6:00pm
Cumberland 1-2

4:30pm

P11 The Influence of Social Capital in Financial Planning Businesses
Financial planners have tradionally grown their business through their personal networks, amongst other contributing factors. The role that social capital plays on the perceived business performance of financial planners is investigated. Two forms of social capital, namely formal and informal social capital, together with social media are explored in a qualitative study to establish the relationships that exist between social capital and perceived business performance in financial planning practices.

Author(s): Jackie Palframan

Sunday October 1, 2017 4:30pm - 6:00pm
Cumberland 1-2

4:30pm

P12 Incarceration, Labor Markets, and Firm Performance
The prison population in the United States has grown from a rate of 683 per 100,000 in 2000 to 731 per 100,000 in 2010. Incarceration can take a portion of the working population out of the workforce permanently due to bans on felons working in over 50 industries. Schmitt and Warner (2010) estimate that in 2008 these employment losses resulted in a cost to the U.S. of approximately $57 to $65 billion. We conduct analyses on the impact of incarceration on firms based in the U.S. We hypothesize that increases in incarceration rates have a negative impact on firm performance.

Author(s): Makeen Huda, Jennifer Brodmann, M. Kabir Hassan

Presenters
MH

Makeen Huda

University of New Orleans


Sunday October 1, 2017 4:30pm - 6:00pm
Cumberland 1-2

6:00pm

 
Monday, October 2
 

6:59am

Registration Desk Open
Monday October 2, 2017 6:59am - 5:30pm
MCC

7:00am

Continental Breakfast
Monday October 2, 2017 7:00am - 7:45am
MCC

7:00am

FPA® CFP® Ethics
Contact FPA® for more information.

Monday October 2, 2017 7:00am - 9:15am
MCC202

8:00am

FPA® First Time Attendee Orientation
FPA®

Monday October 2, 2017 8:00am - 8:45am
MCC205

9:00am

FPA® Keynote: Growing Trust in Business Relationships
General Session Keynote Speaker: Phillip Fulmer, College Football Hall of Fame Coach

Monday October 2, 2017 9:00am - 10:15am
MCC Ballroom B/C

10:15am

Break
Monday October 2, 2017 10:15am - 10:45am
MCC

10:45am

G1a Relevance between Utility Theory and Measured Risk Tolerance: Empirical Utilization of G&L Scale
The main research purpose of the study is to make an empirical linkage between the objective risk tolerance utility function and the subjective risk tolerance scale. Specifically, this study utilizes the S&P point for considering the objective risk tolerance utility function and utilizes the empirical risk tolerance data measured by using Grable-Lytton scale from 2008 and 2013. The results from this analysis add to the literature by showing investments in the stock market are strongly associated with the risk attitudes and preferences of investors. Subjectively measured risk tolerance scores can be used to predict the value of the S&P500.

Author(s): Wookjae Heo, Ph.D., John Grable, Abed Rabbani, Ph.D.

Presenters
WH

Wookjae Heo

Assistant Professor, South Dakota State University


Monday October 2, 2017 10:45am - 11:45am
MCC105B

10:45am

G1b Risk Profiling and the Development of Asset Allocation Recommendations
The purpose of this study was to document how financial professionals evaluate their clients' risk-taking characteristics (e.g., risk tolerance, financial capacity, time horizon, etc.) into meaningful risk profiles. This presentation will provide an overview of what financial planning professionals believe are the most important risk-profiling factors associated with the development of a client’s investment portfolio, and how financial professionals combine elements associated with a client’s risk profile when developing an asset allocation recommendation.

Author(s): Michelle Kruger, Amy Hubble, CFA, CFP®, John Grable, Shawn Brayman

Presenters
avatar for Michelle Kruger

Michelle Kruger

University of Georgia
Michelle Kruger is a PhD student with a concentration in Financial Planning at the University of Georgia (UGA). She graduated magna cum laude with a BBA in Finance from the Terry College of Business at UGA in 2015. Her research interests include spending behavior, financial planning interventions, risk tolerance, financial stress, and behaviors associated with building wealth. In addition to her graduate studies, Michelle works as a research assistant at the Financial Planning Performance Lab at UGA, the... Read More →


Monday October 2, 2017 10:45am - 11:45am
MCC105B

10:45am

G2a Market Volatility and Financial Satisfaction: The Role of Financial Self-Efficacy Beliefs
Financial self-efficacy (FSE) is defined as a person’s own subjective judgments of their ability to control, manage, and influence their financial situation.  This study finds preliminary evidence that FSE beliefs may be useful in predicting an individual's reaction to market volatility.  We propose that financial professionals may wish to assess client’s FSE beliefs in conjunction with their risk tolerance level prior to making portfolio allocation recommendations.

Author(s): Patrick Payne, Sarah Asebedo, Ph.D.

Presenters
PP

Patrick Payne

Western Carolina University


Monday October 2, 2017 10:45am - 11:45am
MCC106A

10:45am

G2b How do Social Security Rules Affect an Individual's Decision to Remarry?
Under the current Social Security rules, a widow/er can receive a social security benefit based on her/his spouse’s earnings if s/he does not remarry before the age of 60. Many widows and divorced women may choose not to remarry because of the eligibility requirement of the Social Security system. To analyze the remarrying decisions of widowed and divorced individuals, this paper will estimate a probit regression that examines the effects of social security spousal rules on the decision to remarry.

Author(s): Cagla Yildirim, Charlene Kalenkoski, Ph.D.

Presenters
avatar for Cagla Yildirim

Cagla Yildirim

Ph.D. Candidate, Texas Tech University


Monday October 2, 2017 10:45am - 11:45am
MCC106A

10:45am

G3a CANCELLED Spending Discomfort and the Contradictory Incentive to Save
This paper analyzes the reasons associated with discomfort from spending down retirement assets. Data collected from a propriety online survey is used to evaluate the associations between savings habits on post-retirement spending discomfort. To better understand the effect of savings habits, we control for risk preferences, spending preferences, longevity and medical expectations, and other relevant life-cycle demographics. The results from this study will provide insight into the behavioral issues that limit post-retirement spending.

Author(s): Chris Browning, Ph.D., Zunaira Khalid

Presenters
avatar for Chris Browning

Chris Browning

Assistant Professor, Texas Tech University


Monday October 2, 2017 10:45am - 11:45am
MCC106B

10:45am

G3b Why do Most Working Households Not List Saving for Retirement as an Important Goal? The Role of Financial Planner
We use data from the 2010 and 2013 Survey of Consumer Finances to examine the association between financial planner use and setting a retirement saving goal. Results show that households who consulted a financial planner are more likely to give retirement as the motive for saving. We also find that advice from a financial planner has a greater influence on the goal setting than other sources of professional advisory services. Our findings suggest that financial planners indeed help individuals achieving their long-term financial objectives by alerting the importance of retirement planning.

Author(s): Kyoung Tae Kim, Tae-Young Pak

Presenters
avatar for Kyoung Tae (KT) Kim

Kyoung Tae (KT) Kim

Assistant Professor, University of Alabama


Monday October 2, 2017 10:45am - 11:45am
MCC106B

10:45am

G4a Performance of SRI Funds and Household Savings Behavior: Is there an Association?
This paper examines whether Socially Responsible Investment funds have outperformed the underlying benchmark index on a risk-adjusted basis over the previous 10, 15, and 20-year time horizon using the Fama-French 3-factor, 5-factor, and Carhart 4-factor models as controls. Additionally, using  10, 15, and 20 year panels our model applies household financial behavior from a nationally representative data set to examine whether changes in household financial market participation during this period were associated with the SRI performance over this period.

Author(s): Nandita Das, Ph.D., Bernadette Ruf, Ph.D., Swarn Chatterjee, Ph.D., Aman Sunder

Presenters
ND

Nandita Das, Ph.D.

Delaware State University


Monday October 2, 2017 10:45am - 11:45am
MCC106C

10:45am

G4b Does Momentum Behave like Stock Market?
This paper investigates the momentum strategy of currency using 66 cross-currency exchange rates from spanning period of December 1984 to December 2015. We follow the approach from Daniel and Moskowitz (2016) paper to investigate the source of the momentum returns. Our finding, however, shows that the (i) unlike stock market, out sample does not behave as it is predicted by Daniel and Moskowitz (2016) result, (ii) the loser portfolio, however, acts the same way as it does in stock market, and (iii) the source of returns from WML is mainly from loser portfolio rather winner portfolio.

Author(s): Phuvadon Wuthisatian, Hasib Ahmed

Presenters
PW

Phuvadon Wuthisatian

Ph.D. Candidate and Teaching Associate, University of New Orleans
Research: Investments, International Finance, Asset Pricing Models, Market Microstructure, Financial Market, Emerging Market and Financial Development.



Monday October 2, 2017 10:45am - 11:45am
MCC106C

11:45am

1:30pm

H1a Analysis of the Survivor Benefit Plan: Considerations and Options for US Veterans
The Survivor Benefit Plan (SBP) is the default life insurance that covers military veterans’ pension payments for dependents. Subsidized by the federal government, it has a positive expected net pay out and receives widespread praise. It's important to recognize the timing of expected SBP payouts and their marginal contribution to other retirement savings. We offer an alternative analysis that casts doubt on whether candidates should select SBP and present an easily implementable alternative. We show that specific financial needs, actuarially correct life expectancy, moral hazard, and taxes all play important roles in choosing whether to enroll in this program.

Author(s): Brian C. Payne, Thomas C. O'Malley, Jr, Ph.D., William W. Jennings, Ph.D. CFA CGMA, Jeffrey C. Merrell, Ph.D.

Presenters
BC

Brian C. Payne

Assistant Professor of Finance College of Business, University of Colorado Colorado Springs


Monday October 2, 2017 1:30pm - Saturday October 28, 2017 2:30pm
MCC105B

1:30pm

H1b Effect of Military Service on Gen X Retirement Income Expectations: Results from the 2013 Survey of Consumer Finances
This study subjectively examines satisfaction of expected retirement income of Generation X. The analysis of respondents includes those born between 1965 and 1981 in the 2013 Survey of Consumer Finances. A logistic regression model predicts that those who serve in the military either currently or in the past are more likely than those who have not to be satisfied with their expected retirement income. Those who never married, are unemployed or disabled, are women, or have young children in the household are less likely than those in their respective reference groups to be satisfied with their expected retirement income.

Author(s): Dalisha Herring, Deanna L. Sharpe, Ph.D.

Presenters
DH

Dalisha Herring

University of Missouri


Monday October 2, 2017 1:30pm - Saturday October 28, 2017 2:30pm
MCC105B

1:30pm

H2a The Effect of Advanced Age and Equity Values on Risk Preferences
This paper analyzes the effect equity values and age have on the risk aversion of participants in U.S. defined contribution plans using a unique dataset with daily responses to a risk tolerance questionnaire. We find that older investors are more risk averse compared to younger cohorts when controlling for the level of the S&P 500 Index, account balance, income, savings percentage, equity percentage and allocation fund percentage. We also find that risk preferences are influenced by the level of the S&P 500, but only in advanced age.

Author(s): Michael Guillemette, Ph.D., CFP®, David Blanchett, Ph.D., CFA, CFP®, Michael Finke, Ph.D., CFP®

Presenters
MG

Michael Guillemette, Ph.D., CFP®

Assistant Professor, Texas Tech University


Monday October 2, 2017 1:30pm - Saturday October 28, 2017 2:30pm
MCC106A

1:30pm

H2b The Psychology of Portfolio Withdrawal Rates
Spending down retirement assets is a rational behavior undertaken by retirees to maximize utility from consumption over the lifecycle; however, the literature on post-retirement spending suggests that actual behavior may deviate from rational expectations. The concern expressed by older consumers about transitioning from retirement saving to retirement spending is psychologically challenging, even when the ability and motivation to spend are present. This study investigates how psychological characteristics combine to support the portfolio withdrawal behavior of retirees.

Authors: Sarah Asebedo, Ph.D., Chris Browning, Ph.D.

Presenters
SA

Sarah Asebedo, Ph.D., CFP®

Assistant Professor, Texas Tech University


Monday October 2, 2017 1:30pm - Saturday October 28, 2017 2:30pm
MCC106A

1:30pm

H3a Exploring the Association Between Inheritance and the Retirement Expectation
This study explored the association between inheritance and the expected retirement age using the 2010 and 2013 Survey of Consumer Finances (SCF). We found that inheritance expectations were associated with the expected retirement age. Specifically, individuals who expected to receive or leave inheritances were more likely to retire early than those without the inheritance expectations while there was no evidence that the effect of previous inheritance receipt on retirement expectation. Policymakers may apply the findings to public pensions and labor market policies. Financial planners and estate planners may use our findings to explain the importance of personalized planning to specific clients who expect to receive or leave inheritances in the near future.

Author(s): Shinae Choi, Ph.D., Kyoung Tae Kim, Ph.D.

Presenters
SC

Shinae Choi

Assistant Professor, The University of Alabama


Monday October 2, 2017 1:30pm - Saturday October 28, 2017 2:30pm
MCC106B

1:30pm

H3b Is There a Need for Emergency Funds?
The paper extends an extant model on the benefits and cost analysis of emergency accounts and runs simulations to evaluate the need for maintaining a low return, liquid emergency funds account.

Author(s): V. Sivarama Krishnan, Ph.D, Julie A. Cumbie, Ph.D.

Presenters
JC

Julie Cumbie

Associate Professor, jcumbie@uco.edu


Monday October 2, 2017 1:30pm - Saturday October 28, 2017 2:30pm
MCC106B

1:30pm

H4a CANCELLED Capacity Constraints, Fund Flows and Hedge Fund Alpha: Emerging Market Evidence
This paper investigates the alpha generating of the Asian hedge funds based on a recent sample compiled from the Eurekahedge, Lipper TASS and Morningstar database covering both the up and down markets and including the latest financial cirsis.  We find a positive average alpha in the cross-section for the majority of strategies and a positive and significant alpha for roughly half of all funds.

Author(s): Mui Kuen Yuen, MBS

Presenters
MK

Mui Kuen Yuen, MBS

Ph.D. Student and Senior Tutor, Massey University


Monday October 2, 2017 1:30pm - Saturday October 28, 2017 2:30pm
MCC106C

1:30pm

H4b Financial Inclusion and Economic Development in OIC Member Countries
We study whether the presence of Islamic finance promotes development and alleviates poverty. Using data from the World Bank, we use dynamic panel analysis and cross-sectional analysis to study the effects of financial inclusion on economic development and poverty alleviation. We find that the countries with Islamic finance tend to outperform the rest of the world. We believe that the ability of financial institutions offering Shari’a compliant services to bring otherwise excluded people under the financial system plays a major role in increased development and reduced poverty in those countries, supporting our view that financial inclusion increases development.

Author(s): Shadiya Hossain, Hasib Ahmed, M. Kabir Hassan

Presenters
SH

Shadiya Hossain

University of New Orleans


Monday October 2, 2017 1:30pm - Saturday October 28, 2017 2:30pm
MCC106C

2:30pm

Break
Monday October 2, 2017 2:30pm - 3:00pm
MCC

3:00pm

I1a Business Ownership and Entity Selection: A Human Capital Approach
Who are entrepreneurs and how do they determine which business entity structure is right for their organization? Financial capital, human capital, and demographic factors were explored, and differences emerged between business owners in general and those who incorporate.

Author(s): Derek Potter, Stuart J. Heckman, Ph.D., CFP®

Presenters
DP

Derek Potter

Ph.D. Student, Kansas State University


Monday October 2, 2017 3:00pm - 4:00pm
MCC105B

3:00pm

I1b Programmed Financial Literacy Testing - A System for Mitigating Cognitive Decline-Induced Financial Decision Quality Erosion?
The risk that comprised financial decision making capacity in advanced age presents to lifestyle quality, family wealth, and general welfare is considered, as are common risk control measures. It may be likely that such measures are frequently overlooked, misapplied, or underutilized. Several  financial control transfer devices, such as conservatorships/adult guardianships, as well as estate planning devices such as powers of attorney and living trusts are explored and compared. The advantages to wealth holders, financial advisory practitioners, and social welfare an early detection and remediation alert/activation system for this problem is  explored, and a framework for one proposed, with the suggestion that such a system be embedded into standard financial planning annual review procedure. Model questions derived from other researchers’ work, tied to a risk-tolerance-questionnaire analog chassis, are suggested as a beginning point to encourage the development of a simple, easily adoptable system for the advisory profession and its related industries. A pilot study of seniors’ literacy with financial concepts germane to typical financial planning clients presenting descriptive statistics for first-tranche primary data from a unique instrument is presented.

Author(s): Jeff Camarda, Ph.D., CFA, EA

Presenters
JC

Jeff Camarda, Ph.D., CFA, EA

Chairman, Camarda Wealth


Monday October 2, 2017 3:00pm - 4:00pm
MCC105B

3:00pm

I2a Charitable Bequest Attitudes among Minorities
This paper presents results from the first nationally representative study of attitudes regarding end of life charitable planning with detailed respondent information. The upcoming transfer of generational wealth has drawn much attention. The current study adds important context to understanding the charitable and religious components of that transfer. In particular, the importance of childlessness suggests that charitable estate transfers will become increasingly important as the rate of childlessness among older adults in the US will be increasing over the next few decades. Further, the results provide interesting contrasts in racial attitudes towards estate giving to charitable and religious organizations.

Author(s): Jennifer Lehman, J.D., Russell N James, III, J.D., Ph.D.

Presenters
avatar for Jennifer Lehman

Jennifer Lehman

Ph.D. Student and Associate Instructor, Texas Tech University
I'm a PhD student in the personal financial planning department at Texas Tech University. Current research is on diversity issues in charitable planning. I have JD and MPA degrees from UNC-Chapel Hill. I love road trips and have been to all 50 states.


Monday October 2, 2017 3:00pm - 4:00pm
MCC106A

3:00pm

I2b The Economic Impact of Pre-retirement Health Issues
This research will broaden the existing literature as it relates to health issues’ negative impact upon overall wealth to health issues’ impact upon retirement saving accounts (defined contribution plans) while controlling for factors within this demographic group. In addition, this research will highlight how the use of a financial planner may mitigate the risk of pre-retirement health issues upon the economic well-being of households.

Author(s): Kimberly Turner

Presenters
avatar for Kimberly Turner

Kimberly Turner

Ph.D. Candidate, The American College


Monday October 2, 2017 3:00pm - 4:00pm
MCC106A

3:00pm

I3a How Much Should Students Borrow for College?
There has been widespread concern over increases in student loan debt and default rates.  The Urban Institute reports student borrowing is second only to mortgage debt.  For students financing a college education, we shed light on appropriate borrowing levels by course of study and future earnings.  While average salaries show college degrees have economic value, these figures are typically averaged together for all courses of study.  This leads to confusion by borrowers.  We use U.S. Census Bureau data to model starting salaries, future earnings, and appropriate borrowing levels by course of study for different loan repayment terms and debt-to-income ratios.

Author(s): Rusty Yerkes, Jennings Marshall, Ph.D., Cynthia Frownfelter Lohrke, Ph.D.

Presenters
RY

Rusty Yerkes

Samford University


Monday October 2, 2017 3:00pm - 4:00pm
MCC106B

3:00pm

I3b The Financial Obligations Burden of U.S. Renter and Owner Households after the Great Recession
The proportion of homeowners with financial obligations payments over 40% of income (heavy burdens) decreased from 22% in 2007 to 16% in 2013, while the proportion of renters with heavy burdens increased from 35% in 2007 to 42% in 2013. We conducted separate logistic regressions of homeowners and renters in 2013 to ascertain the effects of household characteristics on having a heavy burden, and found that having an education loan was related to having a heavy burden for homeowners but not for renters. Homeowners and renters with college degrees were more likely to have heavy burdens than those without college.

Author(s): Congrong Ouyang, MS, Sherman D. Hanna

Presenters
avatar for Congrong Ouyang

Congrong Ouyang

Graduate Associate, Ohio State University


Monday October 2, 2017 3:00pm - 4:00pm
MCC106B

3:00pm

I4a A Look at How Subjective Perceptions of Financial Wellness Compare to Objective Measures for Older Americans
Financial planners often use financial ratios as one set of tools available to assess the financial wellness of their clients. These ratios include the liquidity ratio, debt-to-asset ratio, and the investment ratio and they are objective measures of financial wellness. In this paper, the Health and Retirement Study is used to evaluate whether there is a correlation between these objective measures of financial wellness and subjective perceptions of financial wellness.

Author(s): Jacob A. Tenney, Charlene Kalenkoski, Ph.D.

Presenters
avatar for Jacob A. Tenney

Jacob A. Tenney

Associate Instructor and Ph.D. Candidate, Texas Tech University
I am entering my 4th year in the Ph.D. Program at Texas Tech University. I am researching the relationship between subjective perceptions and objective measures of financial wellness. I also love teaching both online and face to face. I have 5 children that I spend any non-Ph.D... Read More →


Monday October 2, 2017 3:00pm - 4:00pm
MCC106C

3:00pm

I4b Inflation and Asset Performance: 1970-2016
Inflation and Asset Performance:  A Review of the Past 47 Years from 1970-2016

Author(s): Craig L. Israelsen, Ph.D.

Presenters
CL

Craig L. Israelsen, Ph.D.

Executive-in-Residence, Financial Planning Program, Utah Valley University


Monday October 2, 2017 3:00pm - 4:00pm
MCC106C

4:00pm

Break
Monday October 2, 2017 4:00pm - 4:30pm
MCC

4:30pm

J1a Factors Associated with Fragile Families’ Emergency Fund
Having an adequate emergency fund determines a household’s ability to overcome financial trouble and thus overall financial wellness. Fragile families, which refer to unmarried parents and their children, are ill-prepared in emergency savings compared to an average family. This paper determines the factors associated with having emergency funds for fragile families and concludes that having debt significantly reduces a family’s likelihood of maintaining an emergency fund and undermines the influence of income on emergency savings. The odds of having emergency fund are significantly higher in a higher income group than in a lower income group.

Author(s): Abed G Rabbani, Zheying Yao

Presenters
avatar for Abed G. Rabbani

Abed G. Rabbani

Assistant Professor, University of Missouri


Monday October 2, 2017 4:30pm - 5:30pm
MCC105B

4:30pm

J1b CANCELLED Equity Allocation Decisions During the Great Recession
In our analysis, we seek to evaluate what determines the asset allocation decisions of individual investors during a market recession. Using panel data available in the 2007 and 2009 waves of the Survey of Consumer Finances (SCF) we look specifically at the influence of stated risk preferences and changes in risk preferences during the market downturn on the equity allocation decisions of investors during the great recession. We seek to understand how well risk tolerance questionnaires translate into risk in the portfolio over time, particularly during economic downturns.

Author(s): Chris Browning, Ph.D., Benjamin F. Cummings, Ph.D., CFP®, Jacob A. Tenney, CFP®

Presenters
avatar for Chris Browning

Chris Browning

Assistant Professor, Texas Tech University


Monday October 2, 2017 4:30pm - 5:30pm
MCC105B

4:30pm

J2a Changes in Household Normal Income
Do households perceive their normal income to be stable, as implied by discussion of the concept of normal income in the economics literature?  We analyzed the 2007-2009 Survey of Consumer Finances panel dataset, and found that many households had substantial increases or decreases in the level they reported for normal income, with 10% of households reporting increases of 78% or more, and 10% of households reporting decreases of 44% or more. Based on descriptive patterns and a quantile regression on the percentage change in normal income, households do not seem forward-looking in stating the level of household normal income.

Author(s): Sherman D. Hanna, Kyoung Tae Kim, Ph.D., Eunice Jiyhyun Hong

Presenters
avatar for Sherman Hanna, Ph.D.

Sherman Hanna, Ph.D.

Professor, Ohio State University


Monday October 2, 2017 4:30pm - 5:30pm
MCC106A

4:30pm

J2b Are Financial Advisors Subject to the Delay and Magnitude Effects Evident in the Intertemporal Choices of Novice Financial Decision Makers?
Intertemporal financial decisions involve choices between a sooner smaller reward and a later larger reward. Delay effects are evidenced by increased impulsivity (i.e., steeper discounting) when the delay to receipt of the larger later reward is decreased. Magnitude effects are evidenced by increased impulsivity (i.e., steeper discounting) when the size of the sooner smaller and alternate larger later rewards are smaller. Consistent with prior research, the results indicate that novice financial decision makers exhibit impulsive behavior with significant delay and magnitude effects. Contrary to prior research, experts (i.e., professional financial advisors) do not exhibit significant delay or magnitude effects.

Author(s): Kenneth Ryack, Ph.D., CPA, CFP®

Presenters
KR

Kenneth Ryack, Ph.D., CPA, CFP®

Associate Professor, Quinnipiac University School of Business


Monday October 2, 2017 4:30pm - 5:30pm
MCC106A

4:30pm

J3a Bequests Expectation and Estate Planning
This study examined racial/ethnic variations in the association between comorbid health conditions and bequests expectation and estate planning among older adults using data from the 2014 Health and Retirement Study. This study used a number of chi-square, analysis of variance tests, and hierarchical logistic regression and found a statistically significant relationship between race/ethnicity and estate planning preparation. Overall, non-Hispanic Whites made better preparation for estate planning as compared to non-Hispanic Blacks and Hispanics. Furthermore, this study found that comorbidity and bequest motives were positively related to estate planning. This study discussed implications for financial planners, policymakers, and future research.

Author(s): Shinae Choi, Ph.D.

Presenters
SC

Shinae Choi

Assistant Professor, The University of Alabama


Monday October 2, 2017 4:30pm - 5:30pm
MCC106B

4:30pm

J3b Financial Satisfaction and the Big Five: A State-Level Analysis
This study investigates the association between financial satisfaction and Big Five personality scores at the American state-level. State-level financial satisfaction scores and demographic controls were based on aggregate results from the 2009 US State-by-State National Financial Capability Survey. State-level Big Five personality scores were based on 619,397 nationally representative respondents to an internet survey between 1999 and 2005. Hawaii and Alaska were excluded due to their unique aggregate personality profiles. Results of bivariate analysis and a two-block hierarchical regression indicate that conscientiousness is negatively associated with financial satisfaction at the American state-level.

Author(s): Derek Tharp, Martin Seay, Ph.D.

Presenters
avatar for Derek Tharp

Derek Tharp

Ph.D. Candidate, Kansas State University


Monday October 2, 2017 4:30pm - 5:30pm
MCC106B

4:30pm

J4a A Comparison Study of Bucket Strategies – A Case Study
This paper examines popular retirement distribution strategies under multiple return simulators.

Author(s): Tao Guo, Yuanshan Cheng, Ph.D.

Presenters
TG

Tao Guo

Assistant Professor, William Paterson University


Monday October 2, 2017 4:30pm - 5:30pm
MCC106C

4:30pm

J4b Time Preference Measurement in the Survey of Consumer Finances
Past research using the SCF to examine intertemporal choice have previously assumed, either implicitly or explicitly, that the planning horizon question was a valid measurement of time preference. To test this assumption, a measurement paper was constructed using the concept of construct validity. A series of factor analyses and OLS regressions were run on theoretically correlated varaibles. The results suggest that the planning horizon variable may only measure an individual’s current time preference based on their current situation. Additional variables should be included to measure an individual’s time preference over the life cycle.

Author(s): Phil Zepp, Stuart J. Heckman, Ph.D., CFP®

Presenters
PZ

Phil Zepp

Ph.D. Student, Kansas State University


Monday October 2, 2017 4:30pm - 5:30pm
MCC106C

5:30pm

FPA® Opening Reception
FPA®

Monday October 2, 2017 5:30pm - 7:30pm
MCC Exhibit Hall B

6:00pm

FPA® Round Tables
FPA®

Monday October 2, 2017 6:00pm - 7:00pm
MCC209A,B,C