Gender Differences in Risk Aversion: A Developing Nation’s Case

Journal of Personal Finance, Volume 10, Issue 2

23 Pages Posted: 11 Apr 2013 Last revised: 22 Sep 2013

See all articles by Binay Adhikari

Binay Adhikari

University of Texas Rio Grande Valley

Virginia E. O'Leary

Auburn University

Date Written: December 10, 2011

Abstract

This study used Hanna and Lindamood (2004)'s graphic-based survey instrument to examine whether women who are employed in the Nepalese banking sector show more risk aversion than men. Women indeed reported their intention to take less risk and invested less of their wealth in risky assets than men. However, the difference disappeared after controlling for other relevant variables, notably their perceived knowledge of nancial markets. Our analyses suggested that women demonstrated more risk aversion than men because they considered themselves to be less knowledgeable about financial markets. Our findings support the need to educate female investors to increase their confidence in their abilities to succeed in the world of finance.

Keywords: Gender differences, wealth, investments, risk aversion

JEL Classification: G11, D81

Suggested Citation

Adhikari, Binay Kumar and O'Leary, Virginia E., Gender Differences in Risk Aversion: A Developing Nation’s Case (December 10, 2011). Journal of Personal Finance, Volume 10, Issue 2. Available at SSRN: https://ssrn.com/abstract=1522974

Binay Kumar Adhikari (Contact Author)

University of Texas Rio Grande Valley ( email )

1201 W University Dr
Edinburg, TX 78539
United States
9566653827 (Phone)

Virginia E. O'Leary

Auburn University ( email )

415 West Magnolia Avenue
Auburn, AL 36849
United States

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