Gender differences in financial advice

Tabea Bucher-Koenen, Andreas Hackethal, Johannes Koenen () and Christine Laudenbach

No 309, SAFE Working Paper Series from Leibniz Institute for Financial Research SAFE

Abstract: We show that financial advisors recommend more costly products to female clients, based on minutes from about 27,000 real-world advisory meetings and client portfolio data. Funds recommended to women have higher expense ratios controlling for risk, and women less often receive rebates on upfront fees for any given fund. We develop a model relating these findings to client stereotyping, and empirically verify an additional prediction: Women (but not men) with higher financial aptitude reject recommendations more frequently. Women state a preference for delegating financial decisions, but appear unaware of associated higher costs. Evidence of stereotyping is stronger for male advisors.

Keywords: credence goods; financial aptitude; consumer protection; financial literacy; discrimination (search for similar items in EconPapers)
JEL-codes: D8 E2 G2 (search for similar items in EconPapers)
Date: 2021
New Economics Papers: this item is included in nep-cwa, nep-fle and nep-gen
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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Related works:
Working Paper: Gender Differences in Financial Advice (2021)
Working Paper: Gender Differences in Financial Advice (2021)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:safewp:309

DOI: 10.2139/ssrn.2572961

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