Gender differences in financial risk tolerance

By Patti J. Fisher, Rui Yao. 2017

202 citations recorded by the source corpus.

The purpose of this research is to explore gender differences in financial risk tolerance using a large, nationally representative dataset, the Survey of Consumer Finances. The impact of the explanatory variables in the model is allowed to differ between men and women to decompose gender differences in financial risk tolerance. The results indicate that gender differences in financial risk tolerance are explained by gender differences in the individual determinants of financial risk tolerance, and that the disparity does not result from gender in and of itself. The individual variables that moderate the relationship between gender and high risk tolerance are income uncertainty and net worth, with income uncertainty moderating the relationship between gender and some risk tolerance. Financial fiduciaries should understand the differences in income uncertainty and net worth between men and women and how those differences relate to risk tolerance.

Subfields: Accounting, Economics and Econometrics, Finance

View Paper: https://www.semanticscholar.org/paper/db9b8c0c9901090ccdd259867ad4f12e0b2ad23f

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Accounting

In Economics and Econometrics

In Finance

Citations in the corpus

Psychological determinants of retirement financial planning behavior (2021, background): “Another school believes that the disparity in earnings and the gap in financial knowledge favoring males explain this difference (Atkinson, Baird, & Frye, 2003; Almenberg & Dreber, 2015; Bucher-Koenen, Alessie, Lusardi, Van Rooij, 2016; Fisher & Yao, 2017).”
Financial Literacy and Financial Risk Tolerance of Individual Investors: Multinomial Logistic Regression Approach (2020, background): “However, financial, social, cultural, physical, and ethical factors have been suggested as the possible determinants of the individual financial risk tolerance in the related literature, as seen in Figure 1 (Fisher & Yao, 2017; Wang & Hanna, 1998; Yong & Tan, 2017).”