Determinants of Client-Professional Relationship Quality in the Financial Planning Setting

Australasian Accounting Business and Finance Journal, Vol. 5, No. 2, pp. 69-100, 2011

34 Pages Posted: 23 Jun 2011 Last revised: 23 Nov 2015

See all articles by Katherine Helen Mary Hunt

Katherine Helen Mary Hunt

Griffith University

Mark Brimble

Griffith University - School of Accounting, Banking and Finance - Nathan and Logan Campuses; Centre for Financial Independence and Education

Brett Freudenberg

Griffith University - Griffith Business School; Griffith University - Griffith Law School

Date Written: June 20, 2011

Abstract

Advice provided by financial planners has the potential to impact the financial and emotional well being of clients. Despite the outcomes of quality financial planning relationships, there is little direct evidence to support the importance of ‘relationship quality’ in financial planning. Previous research has emphasised the importance of relationship quality in psychology, nursing, and business settings. This research investigates determinants of client-professional relationship quality in financial planning, measured in a survey of clients and financial planners regarding relationship factors of trust, engagement, empowerment, ownership, client activity and commitment. Ratings for relationship dimensions were compared between clients and financial planners, with financial planners found to overestimate their clients’ levels of trust and commitment and underestimate their client’s levels of empowerment. The relationship dimension of ‘trust’ was found to be critical for client-professional relationship quality.

Keywords: Financial Planning, Relationships, Ethics, Trust, Business Relationships, Relationship Quality

JEL Classification: G11, G29

Suggested Citation

Hunt, Katherine Helen Mary and Brimble, Mark and Freudenberg, Brett, Determinants of Client-Professional Relationship Quality in the Financial Planning Setting (June 20, 2011). Australasian Accounting Business and Finance Journal, Vol. 5, No. 2, pp. 69-100, 2011, Available at SSRN: https://ssrn.com/abstract=1867907 or http://dx.doi.org/10.2139/ssrn.1867907

Katherine Helen Mary Hunt

Griffith University ( email )

170 Kessels Road
Nathan, Queensland QLD 4111
Australia

HOME PAGE: http://app.griffith.edu.au/phonebook/phone-details.php?type=B&id=1665253

Mark Brimble (Contact Author)

Griffith University - School of Accounting, Banking and Finance - Nathan and Logan Campuses ( email )

University Drive
Logan, Queensland 4131
Australia
(07) 373 55311 (Phone)

Centre for Financial Independence and Education ( email )

Brisbane, Queensland 4111
Australia

Brett Freudenberg

Griffith University - Griffith Business School ( email )

Brisbane, Queensland 4111
Australia

Griffith University - Griffith Law School ( email )

Nathan Campus, GU
Nathan 4111
Australia

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