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Does financial literacy mitigate gender differences in investment behavioral bias?

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  • Hsu, Yuan-Lin
  • Chen, Hung-Ling
  • Huang, Po-Kai
  • Lin, Wan-Yu

Abstract

This study investigates gender differences in a number of behavioral biases using an online survey of individual investors aged eighteen and over, each of whom has at least one year of stock trading experience in Taiwan. The results reveal that women are significantly more regret averse than men, whereas men have significantly stronger self-attribution, illusion of control, and confirmation biases than women. However, among those who have a high level of financial literacy, the prevalence of behavioral biases is similar across both genders. This suggests that financial literacy mitigates gender differences in behavioral bias.

Suggested Citation

  • Hsu, Yuan-Lin & Chen, Hung-Ling & Huang, Po-Kai & Lin, Wan-Yu, 2021. "Does financial literacy mitigate gender differences in investment behavioral bias?," Finance Research Letters, Elsevier, vol. 41(C).
    • Handle: RePEc:eee:finlet:v:41:y:2021:i:c:s1544612320316032
    DOI: 10.1016/j.frl.2020.101789
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    2. Hsu, Yuan-Lin, 2022. "Financial advice seeking and behavioral bias," Finance Research Letters, Elsevier, vol. 46(PB).
    3. Swapnil Virendra Chalwadi & Preeti Tushar Joshi & Nitin Mohanlal Sharma & Chaitanya Gite & Sangita Salve, 2023. "Gender Differences in Inflation Expectations: Recent Evidence from India," Administrative Sciences, MDPI, vol. 13(2), pages 1-14, February.
    4. Tan, Jing & Cai, Dongliang & Han, Kefei & Zhou, Kui, 2022. "Understanding peasant household’s land transfer decision-making: A perspective of financial literacy," Land Use Policy, Elsevier, vol. 119(C).

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