Risk Attitudes and Investment Decisions across European Countries - Are Women More Conservative Investors than Men?

Barasinska, Nataliya; Badunenko, Oleg; Schaefer, Dorothea

doi:10.2139/ssrn.1342731

Cited by 15 publications

(7 citation statements)

References 26 publications

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“…Gender did not moderate the relationship between risk aversion and intention. The results are inconsistent with the findings of Keller and Siegrist (2006), Barasinska et al (2009), Montford and Goldsmith (2015), Dickason and Ferreira (2018), and Lawrenson and Dickason-Koekemoer (2020), which revealed that female investors are more risk-averse and choose the less risk associated investments than male investors. Moreover, the study found that financial literacy did not moderate the relationship between risk aversion and behavioral intention.…”

Section: Discussioncontrasting

confidence: 87%

How does risk aversion shape investors’ intentions? Evidence from the Indian corporate bond market

E.,

Matha,

et al. 2023

Investment Management and Financial Innovations

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Risk aversion plays a crucial role in understanding how individuals make financial decisions and allocate their resources. This study analyzes the influence of risk aversion on behavioral intentions and explores the mediating role of attitudes, subjective norms, and perceived behavioral control. Additionally, it investigates the moderating effect of gender and financial literacy on behavioral intentions of investors. A sample of 400 people was collected from Indian retail investors by administering a structured questionnaire through stock brokering firms, and data were analyzed using Partial least squares – Structural equation modelling in the Smart PLS 3.3.9 software. The research found that risk aversion, attitude, subjective norms, and perceived behavioral control significantly impact an investor’s intention. Among all the antecedents of behavioral intentions, perceived behavioral control (β 0.481*) was found as a significant predictor of the intention compared to attitude (β 0.154*), subjective norms (β 0.224*) and risk aversion (β 0.082*) factors. Further, mediation analysis found that attitude, subjective norms, and perceived behavioral control partially mediated the relationship between risk aversion and intention. Lastly, the multi-group analysis revealed that gender and financial literacy did not moderate the association between risk aversion and intention.

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Section: Discussioncontrasting

confidence: 87%

How does risk aversion shape investors’ intentions? Evidence from the Indian corporate bond market

E.,

Matha,

et al. 2023

Investment Management and Financial Innovations

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“…Whereas investors agree on the same basic modules of investment decision approach, a lot of behavioural finance researchers also accept that there is dissimilarity in the perception of men and women (Beckmann & Menkhoff (2008). Investment objectives, risk tendency and investment return prospects of both the genders are not similar (Jianakoplos & Bernasek 1998;Nataliya et al, 2009;Tahira & Cazilia, 2008). Martenson (2008) opined that men are fascinated to invest for a long duration and women desire quick returns in short term.…”

Section: Introductionmentioning

confidence: 99%

Behavioural, Socio-economic Factors, Financial Literacy and Investment Decisions: Are Men More Rational and Women More Emotional?

Prasad

Kiran

Sharma

2021

The Indian Economic Journal

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This study covers the gender-wise analysis of how behavioural factors and socio-economic factors along with the level of financial literacy influence investment decisions of Indian retail investors. Equally pertinent is to understand that will it have a different influence and bearing on males and females. Multivariate technique partial least squares-structural equation modelling (PLS-SEM) has been applied to develop the model and analyse the results. The study used a structured questionnaire for collecting data from retail investors. The findings of PLS-SEM show that in both genders, behavioural factors, socio-economic factors and financial literacy factors significantly affect investment decisions. However, the findings demonstrate that for women investors, the model is more effective. This study may be useful for prospective fund managers as, in many earlier studies, women are considered to be risk aversive. The results demonstrate that there is a need to target women, and the scenario today is not similar to the pre-existing ones. JEL Classification: G110, G4

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“…By analyzing the results presented in Table 2, we verified that gender and marital status are the only significant demographic variables, validating that men show more preference for uncertainty than women (as observed by Slovic [13]; Jianakoplos and Bernasek [14]; Finucane et al [7]; Badunenko et al [15]; Croson and Gneezy [16]; Saraiva [17]; Charness and Gneezy [18]), and single people are more prone to uncertainty than married individuals (as observed by Cohn et al [19]; Roszkowski et al [43]; Grable and Lytton [44]; Hallahan et al [3]; Yao and Hanna [45]; Roussanov and Savor [46]). The remaining demographic characteristics are not statistically significant, although they present the correct signal.…”

Section: Probit Regressionmentioning

confidence: 52%

Should I Play or Should I Go? Individuals’ Characteristics and Preference for Uncertainty

Saraiva

Gonçalves

2022

Games

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This paper presents an incentivized experiment analyzing the role of demographic characteristics in individual decision-making under uncertainty. Reactions to a natural source of uncertainty, payoffs in a TV game show, were measured using Fuzzy-set Qualitative Comparative Analysis (fsQCA), allowing us to identify multiple configurations of causal conditions that are sufficient for individuals to prefer an uncertain payoff to a sure gain, and, thus, lower risk aversion. This paper found evidence of preference for uncertainty, measured as willingness to play for an uncertain payoff, in individuals with characteristics most commonly present in the literature: being male; young; childless; with studies in finance or similar areas. This paper also shows that conditions that would not justify the preference for uncertainty according to the literature (an older individual or having children), when combined with other conditions, change contestants’ behavior regarding preference for uncertainty. Individuals that are both older and single, and individuals that have children combined with education in finance, show an inverse effect on preference for uncertainty.

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Risk Attitudes and Investment Decisions across European Countries - Are Women More Conservative Investors than Men?

Cited by 15 publications

References 26 publications

How does risk aversion shape investors’ intentions? Evidence from the Indian corporate bond market

How does risk aversion shape investors’ intentions? Evidence from the Indian corporate bond market

Behavioural, Socio-economic Factors, Financial Literacy and Investment Decisions: Are Men More Rational and Women More Emotional?

Should I Play or Should I Go? Individuals’ Characteristics and Preference for Uncertainty

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