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ARE WOMEN MORE RISK-AVERSE THAN MEN?
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... Likewise, Hibbert et al. (2008) showed that single women didn't have a higher risk of aversion than men. ...
... Men had a greater chance of getting benefits, while women were more prone to losses. (Dwyer et al., 2002); and (Hibbert et al., 2008) showed that women were more risk-averse than men. ...
... So, the elderly were less likely to be loss-averse and less likely to bear investment risk than younger ones. Likewise, Hibbert et al. (2008) showed that the age of women, singles didn't have a higher risk aversion than men. ...
The covid-19 Pandemic has made many people work from home to have much time to trade in the capital market. Through the "Yuk Nabung Saham” program, Indonesia Stock Exchange (IDX) tries to introduce the capital market to young investors through a partnership with the university. This study aimed to analyze the effect of demographic variables (age, gender, and experience) on investment decision-making through risk perceptions and risk attitudes in the Indonesia Stock Exchange under the Covid-19 pandemic pressure. Used SEM-PLS analysis with Mediation effects, 160 Surabaya’s Investors as respondents analyzed. This study showed that age, gender, and experience affect investment decision-making through risk perception and risk attitude. In the Covid-19 pandemic, market conditions were very dynamic and erratic, resulting in investors' perceptions and risk attitudes changing, thus changing their behaviour to become more speculative and reactive to take advantage of the market. Students’ respondents were currently young investors who may not yet have mature financial capabilities, so they had behaviour with a high psychological bias. But in the next ten years, these investors would have grown into professional investors who strengthened the Indonesia Stock Exchange.
... Similarly, De Cabo et al. (2012) asserted that, compared to firms whose boards are homogeneous, female directors bring valuable external resources that benefit the board. On the contrary, Hibbert et al. (2008) argued that there is no significant difference between females and males on risk preferences when individuals' education level is the same. In other words, females are not more risk-averse than males. ...
We empirically investigate the relationship between the gender-diversity and bankruptcy risks in Chinese-listed manufacturing firms. We also investigate whether the executives’ education level moderates the relationship between the gender-diversity and bankruptcy risk. Using a sample of 4,079 firm-year observations from 2005–2016, we find that, at the executives’ level, firms with greater gender-diversity have a lower propensity for bankruptcy risk compared to firms with lower gender-diversity. More importantly, we find that the higher educational level strengthens this negative relationship between gender-diversity and bankruptcy.
... 2011). Given the same level of education, irrespective of their knowledge of finance, women's risk aversion is same as that of men (Hibbert, Lawrence and Prakash, 2008). But since women are less likely to have a formal financial education than men, this result also implies a smaller involvement of women in the household finances (Bernasek and Bajtelsmit, 2002). ...
The contribution of Indian women in family, businesses and society is today being recognized. The role of women in the family decisions is also increasing with the change in demographics as more women are
now participating in economic activities. With the change in education, employment and contribution in the earnings of the family, her say in the family decisions are increasing. When it comes to the investment
decisions, women tend to be risk averse, have conservative attitude, lower levels of financial knowledge, lack of confidence and dependent on guidance from others as suggested by different researches worldwide. The role of husband becomes particularly important for women while choosing investment products or taking investment decisions. This article attempts to highlight the role of women in
investment decision making in the family and further examines the role of a male spouse on the investment decisions. The objectives of the study were to examine the behavior of working women while
taking investment decisions; and to identify the extent to which the investment decisions of the working women are influenced by the spouse/husband. The article further highlights that, when it comes to
investment decisions, both husband and wife share responsibility for making investment decisions. There are investment products like Bank deposits, 5 year tax saving FDs, precious metals, public provident fund, national pension system, post office saving schemes, mutual funds, life insurance, and commodities, where the influence of women is stronger than their male spouse. The influence of a male spouse is stronger in products like real estate, company deposits, debentures or bonds, pension schemes, equity shares and derivatives.
Keywords
India, Financial Planning, wealth management, Women, Role of women, Investment Decisions, Family, Investment Decision Making
... Hinz, McCarthy, & Turner (1997); Byrnes, Miller, & Schafer (1999); and Bernasek & Shwiff (2001) examining investment behavior found that women were more risk-averse than men, while Sunden & Surette (1998) claimed that gender and marital status were significantly associated for asset allocation. Hibbert, Lawrence, & Prakash (2008) disclose that risks related to gender, age, income, wealth, marital status, race/ethnicity, and the number of children under 18 in the family. Olsen & Cox (2001) found that women are more risk-averse than men when faced with social and technological dangers, even when both have the same expertise and experience. ...
The purpose of this study is to measure the level of financial literacy of working women, to describe assets allocation, as well as the time and profit in investment. This research paper is a qualitative study using the descriptive method. Noting the purpose, it is suitable if the qualitative approach was implemented. The respondents are working women with most of them have been married, 16-22 years old on average, have a bachelor degree, and work in the government sector with the majority of the income is more than 4.000.000 rupiahs. Those respondents’ characteristics will influence their choice in doing investment because it is associated with the tolerance of risks. The first form of behavior and preference of investment done by working women is that majority of them have thought about investment plan and most of the respondents think that everyone can get profitable investment if they do financial planning and saving/investment. The second form of behavior is that the majority of respondents are more interested in property investment. The third form of behavior motivating working women in doing investment is themselves, like retirement planning and family security reason. Based on the study, it shows that working women have high financial literacy which is indicated by their discipline in doing the investment of their excess money, thus they have control over their finances and believe to get investment profit they should do financial planning.
... This means that there are some workers who seek risk while others avoid risk and others are indifferent to risks. Empirical studies suggest that age, gender, personality, parent's risk preference, income level, marital status, and educational level can all determine risk preference of an individual (Hibbert, Lawrence, & Prakash, 2008;Hyrshko, Luengo-Prado, & Sørensen, 2011;Gallagher; This theory is consistent with accident-proneness theory that suggests that there few people suffer several accidents and such individuals must have some characteristics that make them more vulnerable to experiencing accident (Raouf, 1998;Larsson, 1999, cited in Suutaniren, 2003. However, this theory is considered both scientifically and politically incorrect (Raouf, 1998;Larsson, 1999, cited in Suutarinen, 2003. ...
This book draws on the theories, research and practice in occupational health psychology to provide a useful compass for understanding health and safety issues in general and in the oil and gas sector in particular. This book provides vital background information for both local and foreign practitioners interested in the management of health and safety in the oil and gas sector in Ghana. Key topics covered include: health & safety in oil and gas, cost of industrial accident, safety behaviour, theories of accident causation, risk perception, safety climate, hazards management, behaviour-based safety approach, occupational injuries, diseases, and psychological wellbeing on oil rigs, as well as safety laws in Ghana. This book, therefore, is an excellent text for students studying industrial/organizational psychology, occupational health psychology, occupational safety and health, accident and safety at work, oil and gas management in departments of Psychology, HRM, and Industrial Engineering as well as schools of Public Health.
Resumo Na última década, o processo decisório do investidor brasileiro tem se tornado mais complexo, e a educação financeira tem assumido maior destaque na mídia e nos veículos de comunicação. Em meio à diversidade de produtos financeiros disponíveis no mercado, é de suma importância que a população esteja preparada e consciente ao contratar esses produtos ou fazer aplicações de sua renda. Dado este cenário, o presente artigo buscou investigar as influências do gênero, da educação financeira e da interação social sobre as escolhas de investimento em renda variável e renda fixa do investidor brasileiro. Os dados foram coletados por meio da aplicação de questionários físicos e online, gerando uma amostra de 283 estudantes dos cursos Ipameri. No que tange ao método, a análise dos dados envolveu análise de correlação; análise bivariada utilizando os testes não paramétricos Kruskal-Wallis e Mann-Whitney; e regressão linear múltipla. As variáveis dependentes do modelo econométrico elaborado foram investimento em renda fixa e investimento em renda variável. As variáveis independentes e de controle foram: conhecimento financeiro, conhecimento econômico, gênero, interação social, nível de escolaridade, renda, estado civil e idade. Os resultados da regressão apontaram que o gênero não influencia a quantia investida pelo investidor. Por sua vez, o nível de educação financeira influenciou negativamente o montante investido em renda variável e a interação social afetou positivamente a quantia investida em renda fixa e em renda variável, mostrando que a rede de relações com amigos, familiares e vizinhos motiva o investidor a investir maiores quantias em ambos os tipos de investimento. Infere-se que, dadas as incertezas geradas pelo cenário político e econômico no Brasil em 2018 e 2019, os investidores deste estudo, mesmo tendo conhecimento sobre finanças/economia, podem ter se sentido inseguros para investir no atual momento. Notou-se também que as opiniões de amigos, assim como a rede de relacionamentos influenciam o processo decisório do indivíduo. Entretanto, não foi encontrada relação entre o gênero do respondente e a quantia por ele investida. Os resultados deste estudo contribuem para auxiliar os gestores das agências financeiras a
In the last decade, the decision-making process of Brazilian investors has become more complex, and financial education has assumed greater prominence in the media. Amid the diversity of financial products available on the market, it is extremely important that the population is prepared and aware when hiring these products or investing their income. Given this scenario, this article sought to investigate the influences of gender, financial education and social interaction on the Brazilian investor's investment choices in variable income and fixed income. Data were collected through the application of physical and online questionnaires, generating a sample of 283 students from Administration and
Commercial Management courses at the Federal University of Uberlândia, Uberaba’s University and the Goiania Federal Institute at Ipameri. Concerning the method, correlation analysis, bivariate analysis using Kruskal-Wallis and Mann-Whitney non-parametric tests and multiple linear regression were performed. As dependent variables, investment in fixed and investment in variable income were selected. The independent and control variables were: financial knowledge, economic knowledge, gender, social interaction, education level, income, marital status and age. The regression results showed that gender does not influence the amount invested by the investor. In turn, the level of financial education negatively influenced the amount invested in variable income and social interaction positively affected the amount invested in fixed income and variable income, showing that the network of relationships with friends, family and neighbors motivates the investor to invest larger amounts in both types of investment. It is inferred that, given the uncertainties generated by the political and economic scenario in Brazil in 2018 and 2019, the investors in this study, even having knowledge about
finance/economics, may have felt insecure to invest at the current time. It was also noted that the opinions of friends, as well as the network of relationships influence the individual's decision-making process. However, no relationship was found between the respondent's gender and the amount invested by him. The results of this study help to help managers of financial agencies to better identify the profile of their customers in terms of risk tolerance, and thus address and conduct the sale of financial products
in a more appropriate way.
The aim of the article: The crisis, both in the economic and financial markets, can lead to a sudden downturn and a loss of savings. For this reason, during a crisis, safe investments are essential to reduce risks and avoid losses. This year’s coronavirus pandemic has caused a lot of confusion in the financial and investment world as well.The pandemic led to turbulence in the financial market and made investors look for the so-called safe havens. In the literature, these havens often include alternative investments with a high demand for gold. This article aims to check the validity of using gold as an investment during a pandemic.
Methodology: In the paper, in order to achieve the formulated aim, the following stages were carried out: critical analysis of the literature regarding the factors influencing investment decisions and the characteristics alternatives instruments. The last stage was based on statistical analysis using the Pearson correlation method. Gold prices were compared with quotations of two price indexes: WIG20 and S&P500.
Results of the research: The conducted analysis shows that gold as an alternative investment is a good hedge in times of crisis, therefore, it is also the case during ongoing pandemic. Alternative assets fulfill a hedging function, minimizing the risk of losses. Moreover, thanks to a negative correlation with the market, they give a possibility to increase investors’ capital in times of crisis.
This article comprehensively presents evidence of shared gender economics in accessing credit for women-owned ventures. The 'she' based approach has faced financial-market differentiations when it comes to women's access to finance. By reviewing and analysing approximately 125 articles, the researchers try to seek an overview of the degree of influenced financial availability to women-owned businesses, proclivity covers existing, and relevant studies based on pragmatism of gender bigotry, deep-rooted gender biases, and differences in cost and conditions observed by women-owned enterprises in accessing credit, which is an essential driver for businesses' success. The vital detection of this research unveils that while women-owned firms face certain constraints like their men counterparts, there are many challenges that women solely face because of their gender. Risk aversion of banks, lack of financial services, lack of collateral, and low accessibility to finance are some of the specific constraints faced by women-owned businesses. Our results imply that women-owned firms have more often been credit worthy than the men-owned firms in terms of financial penetrability and debarment from the financial markets. Our main findings are focused on evaluating the gender-subordination approach adopted by the financial service providers to women-led businesses in their quest for financing.
This research paper is an explicit effort to understand the effect of financial autonomy and society on investment decision of individual. Society is a major factor which influences our living standard, thought process and objectives. It is well popular proverb that “Society makes a Man perfect”. Society has a greater influence on our decision making procedure, whether the decisions are taken for personal consumption or for investment decision. Financial autonomy has a grave importance in investment decision making. The current paper is an effort to establish the relation among the different factors, which influences the investment decision making.
The authors conducted a meta-analysis of 150 studies in which the risk-taking tendencies of male and female participants were compared. Studies were coded with respect to type of task (e.g., self-reported behaviors vs. observed behaviors), task content (e.g., smoking vs. sex), and 5 age levels. Results showed that the average effects for 14 out of 16 types of risk taking were significantly larger than 0 (indicating greater risk taking in male participants) and that nearly half of the effects were greater than .20. However, certain topics (e.g., intellectual risk taking and physical skills) produced larger gender differences than others (e.g., smoking). In addition, the authors found that (a) there were significant shifts in the size of the gender gap between successive age levels, and (b) the gender gap seems to be growing smaller over time. The discussion focuses on the meaning of the results for theories of risk taking and the need for additional studies to clarify age trends. (PsycINFO Database Record (c) 2012 APA, all rights reserved)
A sample of 183 financial advisors and 290 advisory clients was used to determine the degree of correspondence between advisors' subjective clinical judgments about their clients' financial risk tolerance and the clients' actual financial risk tolerance. The correlation between the estimates and the actual measures was 0.41. It was further determined that advisors overestimated the risk tolerance of men and underestimated the risk tolerance of women. This distortion could not be attributed to income or wealth differences between the males and females.
Women are generally considered more risk averse than men. Controlling for age, income, and education, this study examined the impact of gender on the superannuation (retirement) fund risk preferences of staff in the Australian university sector. The findings suggest that women choose more conservative investment strategies than men and that lower income (which affects the amount members contribute to their superannuation funds) is the primary contributor to the lower projected retirement benefits of women. Providing members with a choice among risk levels in their retirement investments should significantly benefit male and female retirees.
This research examines the role of gender and optimism on the riskiness of investment choices of students in a semester long investment contest with both monetary and academic incentives. Data suggest that males make more risky investment choices than females, and that this difference was primarily due to the riskier choices of optimistic males. In addition, males demonstrated greater variability in final portfolio value than did females. Our results suggest that 1) the well documented gender difference in investment strategies of men and women may be due to a specific sub-group of males (i.e., optimists); 2) that optimism may lead to different behavioral tendencies in men and women depending on the domain; and 3) that the benefits of optimism may be restricted to domains in which continued effort and information seeking are likely to lead to desired outcomes.
The problem of testing for equality of the medians of two populations is considered. The standard distribution-free tests for this problem require that the two populations have the same shape to maintain their nominal significance level under the null hypothesis. A method is given to modify many of these tests so they can be used to test for equality of the medians with fewer assumptions on the shapes of the two populations. The method is demonstrated using the Mann-Whitney-Wilcoxon statistic.
Behavioral finance theories explain "why" individuals exhibit behaviors that do not maximize expected utility. This study explores how projection bias, as explained by regret theory, may shape financial risk tolerance attitudes. The results suggest that gender, income, and stock market price changes, as measured by the NASDAQ, the Dow Jones Industrial Average, and the Standard & Poor's 500 indexes, help explain risk attitudes. Risk tolerance appears to be an elastic and changeable attitude. This research expands on the work of Shefrin [2000], who reported that recent stock market price changes exert a strong influence on risk tolerance attitudes and behaviors.
In a previous issue of this journal, O'Barr and Conley, noted that cultural differences caused public pension fund managers to invest differently and more conservatively than their private fund counterparts. An additional insight to is that cultural factors have a non-trivial affect on how assets are managed. This article continues with this theme and suggests that, even with equivalent training, experience and information, investment managers make different decisions based on identifiable cultural differences. This study focuses on professional men and women investment managers who perceive and respond to risk differently. This supports O'Barr and Conley, suggesting cultural factors may be responsible for this risk related gender effect.
As is well-known, investors are subject to overconfidence. Using a survey of about 2,000 defined contribution pension plan members, we not only corroborate this, but also explore the demographics of this behavioral flaw. Noting that overconfidence can be partitioned into certainty and knowledge, we find that highly-educated males who are nearing retirement, who have received investment advice, and who have experience investing for themselves, tend to have a higher certainty level. For some groups knowledge matches certainty. Because highly-educated males do not have higher levels of knowledge we conclude that they are more subject to overconfidence.