Gender and its Effect on Investment and Risk Tolerance Over Time

Grace J. Yang


The purpose of this paper is to generate a holistic view of the differences between men and women in the management of money and to explore whether differences in risk tolerance result in significantly different performances. Previous papers have focused solely on one aspect at a very specific time but this paper will look at over twenty studies in different time periods to evaluate
the scope of differences over time. The data has been collected from studies conducted in Hong Kong, Chile, Europe, and the United States between 1988 and 2016. The findings showed that women are still more risk averse than men as is consistent with the global stereotype, but the differences between genders is reducing over time. This paper is original because it uses studies across a 28 year time period to collect data for comparison across genders and includes three aspects of management: entrepreneurial, investment, and savings. We contribute to the literature by showing the trend of smaller gender differences over time and interpret the significance of this difference on strategic performance.

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