The Impact of Product Markets and Gender on Investment Behavior

44 Pages Posted: 28 May 2021

See all articles by Daniel Bradley

Daniel Bradley

University of South Florida

Kyre Lahtinen

Wright State University

Stephan Shipe

Wake Forest University

Date Written: January 27, 2021

Abstract

Gender has been shown to influence investment behavior and performance. We focus on firms who predominantly cater to one gender based on textual analysis of gender keywords in firms’ 10-Ks. We find that female (male) households significantly overweight female-focused (male-focused) firms. While we find some evidence that females outperform males in their investment performance, we find they significantly underperform in female-focused firms. Females trade significantly less than males overall, but they trade similarly to males in female-focused firms. We find weak evidence that institutional investors’ gender holdings exhibit patterns similar to individual investors. Overall, our evidence suggests that product market exposure influences investment behavior and gender is an important characteristic of such exposure.

Keywords: investor behavior; gender; product markets; overconfidence

JEL Classification: G11, G24, D83

Suggested Citation

Bradley, Daniel and Lahtinen, Kyre and Shipe, Stephan, The Impact of Product Markets and Gender on Investment Behavior (January 27, 2021). Available at SSRN: https://ssrn.com/abstract=3854117 or http://dx.doi.org/10.2139/ssrn.3854117

Daniel Bradley

University of South Florida ( email )

Tampa, FL 33620
United States

Kyre Lahtinen

Wright State University ( email )

Dayton, OH 45435
United States

Stephan Shipe (Contact Author)

Wake Forest University ( email )

P.O. Box 7659
Winston-Salem, NC 27109-7285
United States

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