Gender Differences in Financial Advice

65 Pages Posted: 4 Mar 2015 Last revised: 21 Jul 2021

See all articles by Tabea Bucher-Koenen

Tabea Bucher-Koenen

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

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 offer more self-serving advice to female than to male clients, based on minutes from about 27,000 real-world advisory meetings. Women are more likely to obtain recommendations to purchase costly mutual funds produced by the bank's own asset manager and are less likely to obtain rebates on any sales commissions. We develop a model relating this gender difference in the implied cost of advice to client stereotyping and empirically verify an additional prediction: Women (but not men) with higher financial aptitude reject recommendations more frequently than their less apt peers. 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 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

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