The Effect of Prior Investment Outcomes on Future Investment Decisions: Is There a Gender Difference?

Ann Marie Hibbert, Edward R Lawrence and Arun J Prakash

Review of Finance, 2018, vol. 22, issue 3, 1195-1212

Abstract: We use our survey of finance professors from universities across the USA to investigate whether men and women react differently to prior gains and losses. We find that after incurring a loss, a large fraction of men continue to invest in stocks, but a majority of women tend to avoid investing in stocks. Even though prior losses increase the expectation of unfavorable market conditions, we find that women are more likely than men to expect unfavorable market conditions irrespective of whether they have made a gain or a loss in their prior stock market investments.

Keywords: Prior gains and losses; Loss aversion; Risk aversion; Gender difference in response to losses (search for similar items in EconPapers)
Date: 2018
References: Add references at CitEc
Citations: View citations in EconPapers (8)

Downloads: (external link)
http://hdl.handle.net/10.1093/rof/rfw060 (application/pdf)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:oup:revfin:v:22:y:2018:i:3:p:1195-1212.

Ordering information: This journal article can be ordered from
https://academic.oup.com/journals

Access Statistics for this article

Review of Finance is currently edited by Marcin Kacperczyk

More articles in Review of Finance from European Finance Association Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK. Contact information at EDIRC.
Bibliographic data for series maintained by Oxford University Press ().