Are women more risk averse in investments? Brazilian evidence

Abstract

Purpose

This paper seeks to investigate whether women exhibit greater risk-aversion behavior than men in investments by estimating the influence of gender on portfolio volatility.

Design/methodology/approach

Data on the volatility observed in the portfolio in the last six months, last twelve months and since the individual became a client at one of the largest financial institutions in Brazil – and in Latin America – that operates in the capital markets are used. In addition to the gender explanatory variable, socioeconomic variables such as age, marital status, suitability, residence in capitals and declared assets are controlled, and multiple linear regression models are controlled.

Findings

The results show that gender is statistically significant in all models estimated to explain the volatility of investment portfolios, saying that women are more risk averse than men.

Originality/value

These findings are useful for the scientific literature that investigates behavioral finance by bringing empirical evidence for Brazil.

Citation

De Sá, R.B.C., Tessmann, M.S. and Pinto, A.C. (2024), "Are women more risk averse in investments? Brazilian evidence", Review of Behavioral Finance, Vol. 16 No. 5, pp. 958-969. https://doi.org/10.1108/RBF-11-2023-0300