Team Gender Diversity and Investment Decision Making Behavior
Review of Behavioral Finance, Vol. 5, No. 2, 2013
28 Pages Posted: 13 Jul 2010 Last revised: 11 Sep 2014
Date Written: February 1, 2013
We investigate whether the gender composition of a fund management team influences investment decision making behavior. Using an experimental economics approach, we examine the relationship between gender diversity and investment decisions. We find evidence that a male presence increases the probability of selecting a higher risk investment. However, the all male teams are not the most risk seeking. Moreover, having a male presence increases loss aversion. In the context of workforce composition, these results could have important implications for team investment decisions driven by the assessment of risk and return trade-offs.
Keywords: Investment decision making, group composition
JEL Classification: G11
Suggested Citation: Suggested Citation