Gender differences in investment strategies: an information processing perspective

Abstract

Refers to past research regarding gender differences in investment strategies which has pointed to two important differences: female investors appear both to be more risk averse and to have less confidence in their investment decisions than male investors in equivalent circumstances. Given the relative consistency of these findings, as well as the potential long‐term financial implications of these differing investment strategies, surprisingly little research has focused on the underlying reasons for these gender differences. Proposes that gender differences in information processing styles may account for the lower risk‐taking tendencies among female investors as well as the tendency toward lower confidence levels. Implications regarding marketing strategies for the financial services sector are discussed.