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Gender and age-based investor affinities in a Ponzi scheme

Author

Listed:
  • Li Huang

    (City University of Hong Kong)

  • Oliver Zhen Li

    (Shanghai Lixin University of Accounting and Finance
    National University of Singapore)

  • Yupeng Lin

    (National University of Singapore)

  • Chao Xu

    (Nanjing Audit University)

  • Haoran Xu

    (Dongbei University of Finance and Economics)

Abstract

Utilizing a police dataset of a fundraising Ponzi scheme in China, we establish referrer-investor links and examine how investor affinity in terms of gender and age affects the way the scheme spreads and the way investors suffer losses. We find that female or older investors are more susceptible to investor affinity. Specifically, female or older investors are more likely to be referred into the scheme by female or older investors. Female or older investors tend to occupy lower layers in the investor hierarchy of the scheme and they are more likely to occupy lower layers if they are referred into the scheme by female or older investors. Consequently, female or older investors suffer more losses if they are referred into the scheme by female or older investors. We conclude that gender and age-based investor affinities are especially pronounced among female or older investors in a Ponzi scheme.

Suggested Citation

  • Li Huang & Oliver Zhen Li & Yupeng Lin & Chao Xu & Haoran Xu, 2021. "Gender and age-based investor affinities in a Ponzi scheme," Palgrave Communications, Palgrave Macmillan, vol. 8(1), pages 1-12, December.
    • Handle: RePEc:pal:palcom:v:8:y:2021:i:1:d:10.1057_s41599-021-00733-w
    DOI: 10.1057/s41599-021-00733-w
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    References listed on IDEAS

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