Gender matters most. The impact on short‐term risk aversion following a financial crash

Abstract

AbstractThis paper examines how investors in an emerging market react to a domestic financial crisis. We conjecture that risk aversion increases following such events and that the effect is more pronounced among specific groups of investors. Our study makes use of a unique dataset of mutual fund investors from one of Colombia's largest stock brokers. Our results reveal that women and self‐employed individuals make the largest withdrawals from risky funds after financial crises.