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Gender differences in optimism and asset allocation

  • Ben Jacobsen
  • , John B. Lee
  • , Wessel Marquering
  • , Cherry Y. Zhang*
  • *Corresponding author for this work

Research output: Journal PublicationArticlepeer-review

115 Citations (Scopus)

Abstract

We investigate two alternative explanations why men may hold more stocks than women do. Apart from the traditional explanation of a gender difference in risk aversion, gender differences in either optimism or in perceived risk of financial markets might cause men to hold riskier assets. Our results show that men tend to be significantly more optimistic than women regarding a broad range of issues, including the economy and financial markets. After we take differences in optimism into account, systematic gender differences in asset allocations disappear.

Original languageEnglish
Pages (from-to)630-651
Number of pages22
JournalJournal of Economic Behavior and Organization
Volume107
DOIs
Publication statusPublished - 2014

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

  1. SDG 10 - Reduced Inequalities
    SDG 10 Reduced Inequalities

Free Keywords

  • Asset allocation
  • Consumer confidence
  • Economic indicators
  • Gender difference
  • Optimism
  • Risk aversion

ASJC Scopus subject areas

  • Economics and Econometrics
  • Organizational Behavior and Human Resource Management

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