Gender Differences in Financial Advice

76 Pages Posted: 4 Mar 2015 Last revised: 24 Feb 2021

See all articles by Tabea Bucher-Koenen

Tabea Bucher-Koenen

ZEW – Leibniz Centre for European Economic Research; Max Planck Society for the Advancement of the Sciences - Munich Center for the Economics of Aging (MEA)

Andreas Hackethal

Goethe University Frankfurt - Faculty of Economics and Business Administration; Leibniz Institute for Financial Research SAFE

Johannes Koenen

ARC Econ GmbH

Christine Laudenbach

University of Bonn

Date Written: February 17, 2021

Abstract

We show that financial advisors recommend more costly products to female clients, based on
minutes from about 27,000 real-world advisory meetings and client portfolio data. Funds recommended to women have higher expense ratios controlling for risk, and women less often receive rebates on upfront fees for any given fund. We develop a model relating these findings to client stereotyping, and empirically verify an additional prediction: Women (but not men) with higher
financial aptitude reject recommendations more frequently. Women state a preference for delegating financial decisions, but appear unaware of associated higher costs. Evidence of stereotyping is stronger for male advisors.

Keywords: Financial advice, consumer protection, household finance, financial literacy, discrimination, credence goods

JEL Classification: G02, E02, D08

Suggested Citation

Bucher-Koenen, Tabea and Hackethal, Andreas and Koenen, Johannes and Laudenbach, Christine, Gender Differences in Financial Advice (February 17, 2021). SAFE Working Paper No. 309, Available at SSRN: https://ssrn.com/abstract=2572961 or http://dx.doi.org/10.2139/ssrn.2572961

Tabea Bucher-Koenen (Contact Author)

ZEW – Leibniz Centre for European Economic Research ( email )

P.O. Box 10 34 43
L 7,1
D-68034 Mannheim, 68034
Germany

Max Planck Society for the Advancement of the Sciences - Munich Center for the Economics of Aging (MEA) ( email )

Amalienstrasse 33
Munich, 80799
Germany

HOME PAGE: http://mea.mpisoc.mpg.de/

Andreas Hackethal

Goethe University Frankfurt - Faculty of Economics and Business Administration ( email )

Theodor-W.-Adorno Platz 3
Frankfurt am Main, 60323
Germany

Leibniz Institute for Financial Research SAFE ( email )

(http://www.safe-frankfurt.de)
Theodor-W.-Adorno-Platz 3
Frankfurt am Main, 60323
Germany

Johannes Koenen

ARC Econ GmbH ( email )

Berliner Platz 13
Limburgerhof, 67117
Germany

HOME PAGE: http://arc-econ.de

Christine Laudenbach

University of Bonn ( email )

Bonn, 53113
Germany

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
300
Abstract Views
1,912
rank
121,063
PlumX Metrics