The the Impact of Gender Differences on Financial Risk Perceptions

Abstract

Empirical studies indicate that women are more risk averse than men. Research on financial risk taking behavior reveal mixed results on gender perception. The aim of this study, which is one of the pioneering papers about behavioral finance in Turkey, is to investigate the differences in risk perceptions of female and male financial advisors in Turkish financial institutions and how they reflect these perception differences on their female and male customers. This research employs questionnaire technique. The findings show that female financial advisors give more importance to the probability of gain or loss from financial investments as well as the reliability of financial information than their male counterparts. The designed hypothetical scenarios point out that female and male financial advisors propose different portfolios for female and male customers having same risk levels.