Interaction and Decomposition of Gender Difference in Financial Risk Perception
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In: Journal of Behavioral and Experimental Finance, Vol. 30, 100464, 06.2021.
Research output: Contribution to journal › Article › peer-review
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TY - JOUR
T1 - Interaction and Decomposition of Gender Difference in Financial Risk Perception
AU - Zhu, Dan
AU - Hodgkinson, Lynn
AU - Wang, Qingwei
N1 - 18 months embargo
PY - 2021/6
Y1 - 2021/6
N2 - Previous literature suggests males tend to perceive lower risks than females. We revisit this gender difference by studying the interaction of gender with other observable characteristics in a survey of forecasting future stock prices. We find that some observable characteristics such as culture, age, and uncertainty of stock prices have a different effect on the risk perception between females and males. This additional source (“coefficient effects”) of gender difference is distinct from the differences in personal characteristics (“characteristics effects”). We disentanglethese two sources of gender differences in risk perception by applying the Blinder–Oaxaca decomposition technique. We find that characteristics effects and coefficient effects are both important, and the latter can be even more important than the former.
AB - Previous literature suggests males tend to perceive lower risks than females. We revisit this gender difference by studying the interaction of gender with other observable characteristics in a survey of forecasting future stock prices. We find that some observable characteristics such as culture, age, and uncertainty of stock prices have a different effect on the risk perception between females and males. This additional source (“coefficient effects”) of gender difference is distinct from the differences in personal characteristics (“characteristics effects”). We disentanglethese two sources of gender differences in risk perception by applying the Blinder–Oaxaca decomposition technique. We find that characteristics effects and coefficient effects are both important, and the latter can be even more important than the former.
KW - Gender difference
KW - Risk perception
KW - Interaction
KW - Decomposition analysis.
U2 - 10.1016/j.jbef.2021.100464
DO - 10.1016/j.jbef.2021.100464
M3 - Article
VL - 30
JO - Journal of Behavioral and Experimental Finance
JF - Journal of Behavioral and Experimental Finance
SN - 2214-6350
M1 - 100464
ER -