Enhancing the Quality of Financial Advice with Web 2.0 –An Approach considering Social Capital in the privateAsset Allocation

Although theoretically necessary, social capital is not considered within the process of asset allocation for private investors.Both the lack of appropriate practical valuation concepts and the effort of providing and processing the required informationas input for a valuation were obstacles to include social capital in this process. However, first theoretical financial models forthe evaluation of social capital recently have become available. Moreover, the fast growth of business community websitesand the technological progress in Web 2.0 tools that allow and acquire the active involvement of users, facilitate theprovision and processing of valuation relevant information. In this paper we focus on the second aspect and propose a socialsoftware-based concept that allows for an integration of social capital in the asset allocation process....