Gender differences in financial advice

We show that financial advisors recommend more costly products to female clients, based on minutes from about 27,000 real-world advisory meetings and client portfolio data. Funds recommended to women have higher expense 
We show that financial advisors recommend more costly products to female clients, based on minutes from about 27,000 real-world advisory meetings and client portfolio data. Funds recommended to women have higher expense ratios controlling for risk, and women less often receive rebates on upfront fees for any given fund. We develop a model relating these findings to client stereotyping, and empirically verify an additional prediction: Women (but not men) with higher financial aptitude reject recommendations more frequently. Women state a preference for delegating financial decisions, but appear unaware of associated higher costs. Evidence of stereotyping is stronger for male advisors.
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Metadaten
Author:Tabea Bucher-Koenen, Andreas Hackethal, Johannes Koenen, Christine Laudenbach
URN:urn:nbn:de:hebis:30:3-582722
DOI:http://dx.doi.org/10.2139/ssrn.2572961
Parent Title (English):SAFE working paper ; No. 309
Series (Serial Number):SAFE working paper series (309)
Publisher:SAFE
Place of publication:Frankfurt am Main
Document Type:Working Paper
Language:English
Year of Completion:2021
Year of first Publication:2021
Publishing Institution:Universitätsbibliothek Johann Christian Senckenberg
Release Date:2021/03/02
Tag:consumer protection; credence goods; discrimination; financial advice; household finance; financial literacy
Institutes:Wirtschaftswissenschaften
House of Finance (HoF)
Center for Financial Studies (CFS)
Sustainable Architecture for Finance in Europe (SAFE)
Dewey Decimal Classification:330 Wirtschaft
JEL-Classification:E02 Institutions and the Macroeconomy (Updated!)
G02
Sammlungen:Universitätspublikationen
Licence (German):License LogoDeutsches Urheberrecht

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