Why Can't a Woman Invest More Like a Man? Gender Differences in Investment Behaviour

Abstract

This research finds distinct life cycle patterns of equity participation by gender. The significant factors associated with equity participation also vary notably by gender and age. Women exhibit greater variability in both participation levels and significant factors. Family circumstances are more relevant factors for women. Family obligations appear to constitute a type of habit formation, which affects participation in risky assets in a manner consistent with recent research on life cycle investment models incorporating background risk in labour income and habit formation in consumption. An improved understanding of the life cycle patterns and significant factors in investment behaviour can improve life cycle investment strategies.