Risk Taking in the Context of Financial Advice: The Issue of Gender Identity

34 Pages Posted: 24 Apr 2021 Last revised: 5 Oct 2021

See all articles by Jerome Monne

Jerome Monne

ESSCA School of Management

Janette Rutterford

The Open University - Business School

Dimitris Sotiropoulos

The Open University

Date Written: 04 10, 2021

Abstract

We test a gender threat hypothesis whereby having a financial advisor of the opposite gender results in gender stereotypical risk attitudes. We employ a unique dataset of 1,621 advised UK investors, combined with information on the gender of their financial advisors. Confirming the hypothesis, our results show that men advised by a woman take more risk than when advised by a man. Women advised by a man adopt a more cautious approach than when advised by a woman. When the gender threat is alleviated, we found no gender gap in risk-taking.

Keywords: Behavioural finance, Portfolio choice, Attitude to risk, Gender, Financial advice, Identity.

JEL Classification: G4, G20, G40, D14, J16

Suggested Citation

Monne, Jerome and Rutterford, Janette Marie and Sotiropoulos, Dimitris, Risk Taking in the Context of Financial Advice: The Issue of Gender Identity (04 10, 2021). Available at SSRN: https://ssrn.com/abstract=3823854 or http://dx.doi.org/10.2139/ssrn.3823854

Jerome Monne (Contact Author)

ESSCA School of Management ( email )

BORDEAUX, 33000
France

Janette Marie Rutterford

The Open University - Business School ( email )

Walton Hall
Milton Keynes, MK6 7AA
United Kingdom
00441908655812 (Phone)
00441908655898 (Fax)

Dimitris Sotiropoulos

The Open University ( email )

Walton Hall
Milton Keynes, MK6 7AA
United Kingdom

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