Loss Aversion and Selected Cognitive Distortions Related to Gender Differences
DOI:
https://doi.org/10.33119/SIP.2018.164.2Keywords:
gender differences, cognitive distortions, loss aversionAbstract
The article discusses significant cognitive distortions from the perspective of behavioural finance and financial risk aversion related to gender differences. The introduction outlines the existing gender differences due to cultural and biological differences. Next, the literature was reviewed with regard to risk tendency in the context of differences between men and women, with various risk measurement techniques used. Differences in the degree of impact of heuristics in the gender context. The observed relationships were verified on the basis of empirical research participated by students of psychology and economics. The results of the analyses show that women are more loss averse than men and are subject to some cognitive distortions to a higher degree than men.
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2. Barber B. M., Odean T., Boys Will Be Boys: Gender, Overconfidence, and Common Stock Investment, „Quarterly Journal of Economics” 2001.
3. Bar-Tal Y., Jarymowicz M., The Effect of Gender on Cognitive Structuring: Who Are More Biased, Men or Women?, „Psychology” 2010, 1 (02).
4. Burmeister K., Schade C., Are Entrepreneurs' Decisions More Biased? An Experimental Investigation of the Susceptibility to Status Quo Bias, „Journal of Business Venturing” 2007, 22 (3).
5. Charness G., Gneezy U., Portfolio Choice and Risk Attitudes: An Experiment, „Economic Inquiry” 2010, 48 (1).
6. Chung J., Monroe G., Gender Differences in Information Processing: An Empirical Test of the Hypothesis‐Confirming Strategy in an Audit Context, „Accounting & Finance” 1991, 38 (2).
7. Czerwonka M., Charakterystyka wskaźników modelu kulturowego Hofstede, w: O nowy ład finansowy w Polsce. Rekomendacje dla animatorów życia gospodarczego, red. J. Ostaszewski, E. Kosycarz, Oficyna Wydawnicza SGH, Warszawa 2015.
8. Czerwonka M., Gorlewski B., Finanse behawioralne, Oficyna Wydawnicza SGH, Warszawa 2012.
9. Czerwonka M., Rzeszutek M., Przejawy i uwarunkowania różnic międzypłciowych w zachowaniach inwestycyjnych z punktu widzenia finansów behawioralnych, „Studia i Prace Kolegium Zarządzania i Finansów” 2012, nr 122.
10. Dwyer P. D., Gilkeson J. H., List J. A., Gender Differences in Revealed Risk Taking: Evidence from Mutual Fund Investors, „Economics Letters” 2002, 76 (2).
11. Eckel C. C., Grossman P. J., Sex Differences and Statistical Stereotyping in Attitudes Toward Financial Risk, „Evolution and Human Behavior” 2002, 23 (4).
12. Gorman E. H., Employers’ Cognitive Biases and Gender Differences in Hiring: Evidence from Law Firms, Manuscript, University of Virginia, 2004.
13. Harrington B., Pop Finance: Investment Clubs and the New Investor Populism, „Princeton University Press” 2012.
14. Herman-Jeglińska A., Różnice między kobietami a mężczyznami w zdolnościach poznawczych i organizacji funkcjonalnej mózgu: wpływ płci psychicznej, „Przegląd Psychologiczny” 1999, 42 (1–2).
15. Hersch J., Decisions: Differences by Gender and Race, „Managerial and Decision Economics” 1996, 17.
16. Hoffmann V., Mental Accounts, Gender, or Both? The Intrahousehold Allocation of Free and Purchased Mosquito Nets, Working Paper, 2007, http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.376.5150&rep=rep1&type=pdf
17. Holt C. A., Laury S. K., Risk Aversion and Incentive Effects, „American Economic Review” 2002, 92 (5).
18. Hon-Snir S., Kudryavtsev A., Cohen G., Stock Market Investors: Who Is More Rational, and Who Relies on Intuition?, „International Journal of Economics and Finance” 2012, 4 (5).
19. Hügelschäfer S., Achtziger A., On Confident Men and Rational Women: It’s All on Your Mind (Set), „Journal of Economic Psychology” 2014, 41.
20. Jaiswal B., Kamil N., Gender, Behavioral Finance and the Investment Decision, „IBA Business Review” 2012, 7 (2).
21. Kahneman D., Pułapki myślenia, o myśleniu szybkim i wolnym, Media Rodzina, Poznań 2012.
22. Kahneman D., Tversky A., On the Psychology of Prediction, „Psychological Review” 1973, 80 (4).
23. Kahneman D., Tversky A., Prospect Theory: An Analysis of Decision Under Risk, „Econometrica” 1979, 47.
24. Komisja Europejska, Przeciwdziałanie różnicy w wynagrodzeniu dla kobiet i mężczyzn w Unii Europejskiej, Urząd Publikacji Unii Europejskiej, Luksemburg 2014, http://ec.europa.eu/justice/genderequality/files/gender_pay_gap140319_gpg_pl.pdf
25. Kudryavtsev A., Cohen G., Behavioral Biases in Economic and Financial Knowledge: Are They the Same for Men and Women, „Advances in Management and Applied Economics” 2011, 1 (1).
26. Lee K., Miller S., Velasquez N., Wann C., The Effect of Investor Bias and Gender on Portfolio Performance and Risk, „The International Journal of Business and Finance Research” 2011, 7 (1).
27. Meyers-Levy J., Loken B., Revisiting Gender Differences: What We Know and What Lies ahead, „Journal of Consumer Psychology” 2015, 25 (1).
28. Nelson J. A., Are Women Really More Risk‐Averse than Men? A Re‐Analysis of the Literature Using Expanded Methods, „Journal of Economic Surveys” 2015, 29 (3).
29. Niessen A., Ruenzi S., Sex Matters: Gender Differences in a Professional Setting, 2007, s. 1–69, https://www.econstor.eu/bitstream/10419/57738/1/700623612.pdf
30. Powell M., Ansic D., Gender Differences in Risk Behaviour in Financial Decision-Making: An Experimental Analysis, „Journal of Economic Psychology” 1997, 18 (6).
31. Prelec D., The Probability Weighting Function, „Econometrica” 1998, vol. 66 (3).
32. Schubert R., Brown M., Gysler M., Brachinger H. W., Financial Decision-Making: Are Women Really More Risk-Averse?, „The American Economic Review” 2002, 89 (2).
33. Sikorra M., Wpływ płci na podejmowanie decyzji inwestycyjnych, w: Kierunki rozwoju współczesnych finansów − wybrane zagadnienia, red. M. Czerwonka, Oficyna Wydawnicza SGH, Warszawa 2016.
34. Siva S., A Study on Gender Difference in Investment Choice & Risk-Taking, „International Journal of Applied Research in Business Administration and Economics” 2012, 1 (2).
35. Suetens S., Tyran J. R., The Gambler's Fallacy and Gender, „Journal of Economic Behavior & Organization” 2012, 83 (1).
36. Szyszka A., Finanse behawioralne. Nowe podejście do inwestowania na rynku kapitałowym, Wydawnictwo UE w Poznaniu, Poznań 2009.
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Published
2019-08-07
How to Cite
Piktus, K., & Czerwonka, M. (2019). Loss Aversion and Selected Cognitive Distortions Related to Gender Differences. Studies and Work of the Collegium of Management and Finance , (164), 25–47. https://doi.org/10.33119/SIP.2018.164.2
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