Financial Planning Studies Social Media and Finance Relationship
The team will investigate how financial advisors use social media to interact with clients.
Written by Melanie Hess
Professor Finke says studying tweets provides unique insight into the importance of communication between an individual and a financial professional.
Upcoming research through a partnership between the Texas Tech Department of Personal Financial Planning and Arkovi, a social media archiving company, will investigate how financial advisors use social media to interact with clients.
Michael Finke, professor and doctoral program coordinator for the Department of Personal Financial Planning, said access to Arkovi’s information about client communications through Twitter, as well as future social media outlets, provides new and important insight into the client-planner relationship.
“The tweets tell us when a client reaches out to their advisor.” Finke said. “This provides unique insight into the importance of communication between an individual and a financial professional. For example, our previous research provides evidence that working with an advisor leads to more patience in investment portfolios. The ability to contact a financial advisor when an investor feels anxiety can prevent them from making ill-advised emotional trading decisions.”
The study’s preliminary data indicate communication becomes most active during periods of market uncertainty. Part of the value of a financial advisor is their ability to help maintain a long-run investment plan.
Other recent research in the Department of Personal Financial Planning has focused on retirement savings and withdrawal rates.
Department of Personal Financial Planning
Undergraduate and graduate degree programs in personal financial planning are registered by the CFP Board. Students graduating from a CFP Board-Registered Program are eligible to sit for the CFP® Certification Examination.