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
Date Written: December 10, 2011
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: Suggested Citation