Gender differences in financial risk taking: The role of financial literacy and risk tolerance

Christina Bannier and Milena Neubert

Economics Letters, 2016, vol. 145, issue C, 130-135

Abstract: We study financial risk taking via standard and sophisticated financial investments. Using survey data on 2047 individuals, we find that standard investments are strongly associated with both actual and perceived financial literacy for men, but only with actual literacy for women. Sophisticated investments, in contrast, are significantly related to perceived financial literacy with an even stronger association for women than for men. Interestingly, there is no relation between risk tolerance and women’s sophisticated investments.

Keywords: Financial risk taking; Financial literacy; Risk tolerance; Gender; Household finance (search for similar items in EconPapers)
JEL-codes: D83 D91 G11 J26 (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (54)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:145:y:2016:i:c:p:130-135

DOI: 10.1016/j.econlet.2016.05.033

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