Do women receive worse financial advice?

Do women receive worse financial advice?

We arranged for trained undercover men and women to pose as potential clients and visit all 65 local financial advisory firms in Hong Kong. At financial planning firms, but not at securities firms, women were more likely than men to receive advice to buy only individual or only local securities. Female c...

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Bibliographic Details
Main Authors: BHATTACHARYA, Utpal, KUMAR, Amit, VISARIA, Sujata, ZHAO, Jing
Format: text
Language:English
Published: Institutional Knowledge at Singapore Management University 2024
Subjects:
audit study
gender
financial advice
securities firm
financial planner
risk tolerance
confidence
geographic outlook
Finance
Finance and Financial Management
Gender and Sexuality
Online Access:https://ink.library.smu.edu.sg/lkcsb_research/7042
https://ink.library.smu.edu.sg/context/lkcsb_research/article/8041/viewcontent/The_Journal_of_Finance___2024___BHATTACHARYA___Do_Women_Receive_Worse_Financial_Advice.pdf
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Institution: Singapore Management University
Language: English
Description
Summary:We arranged for trained undercover men and women to pose as potential clients and visit all 65 local financial advisory firms in Hong Kong. At financial planning firms, but not at securities firms, women were more likely than men to receive advice to buy only individual or only local securities. Female clients who signaled high confidence, high risk tolerance, or a domestic outlook were especially likely to receive this suboptimal advice. Our theoretical model explains these patterns as a result of statis-tical discrimination interacting with advisors’ incentives. Taste-based discrimination is unlikely to explain the results.

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