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Gender behavioral differences among Portuguese individual investors

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Detalhes bibliográficos
Resumo:The purpose of this study is to determine if gender differentiates financial decision-making among Portuguese individual investors. We investigate gender differences in financial literacy, risk preferences, and in three relevant investors’ behavioral biases: overconfidence, disposition effect, and loss aversion. For this purpose, we use data from a questionnaire-based survey conducted by CMVM as our data set for the period of June 2018 to August 2018. A total of 2282 participants responded, of which 81.81% were men and 18.19% were women. In the empirical work, to measure the significant association of the gender differences in the context of the mentioned variables, we have used non-parametric tests. The results confirm significant differences between men and women. Findings suggest that men have a higher level of financial literacy, while women reveal more risk aversion than men. The predisposition of exhibit disposition effect is only relevant when other characteristics are considered, in that case, women are more prone to present it than men. When it comes to overconfidence, we find gender differences, but the results depend on the dimension studied.
Autores principais:Silva, Paula Cristina Oliveira Pereira
Assunto:Behavioral Finance Decision Making Gender Behavioral Biases Probit
Ano:2021
País:Portugal
Tipo de documento:dissertação de mestrado
Tipo de acesso:acesso aberto
Instituição associada:Universidade de Lisboa
Idioma:inglês
Origem:Repositório da Universidade de Lisboa
Descrição
Resumo:The purpose of this study is to determine if gender differentiates financial decision-making among Portuguese individual investors. We investigate gender differences in financial literacy, risk preferences, and in three relevant investors’ behavioral biases: overconfidence, disposition effect, and loss aversion. For this purpose, we use data from a questionnaire-based survey conducted by CMVM as our data set for the period of June 2018 to August 2018. A total of 2282 participants responded, of which 81.81% were men and 18.19% were women. In the empirical work, to measure the significant association of the gender differences in the context of the mentioned variables, we have used non-parametric tests. The results confirm significant differences between men and women. Findings suggest that men have a higher level of financial literacy, while women reveal more risk aversion than men. The predisposition of exhibit disposition effect is only relevant when other characteristics are considered, in that case, women are more prone to present it than men. When it comes to overconfidence, we find gender differences, but the results depend on the dimension studied.