Gender Differences in Financial Advice

Tabea Bucher-Koenen (), Andreas Hackethal (), Johannes Koenen () and Christine Laudenbach ()
Additional contact information
Tabea Bucher-Koenen: ZEW-Leibniz Centre for European Economic Research and Mannheim University
Andreas Hackethal: Goethe University Frankfurt and SAFE
Christine Laudenbach: University of Bonn

No 95, ECONtribute Discussion Papers Series from University of Bonn and University of Cologne, Germany

Abstract: 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 recom-mended 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 delegat-ing financial decisions, but appear unaware of associated higher costs. Evidence of stereotyping is stronger for male advisors.

Keywords: credence goods; financial aptitude; consumer protection; financial literacy; discrimination (search for similar items in EconPapers)
JEL-codes: D8 E2 G2 (search for similar items in EconPapers)
Pages: 75 pages
Date: 2021-05
New Economics Papers: this item is included in nep-cwa, nep-fle and nep-mac
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Citations: View citations in EconPapers (4)

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https://www.econtribute.de/RePEc/ajk/ajkdps/ECONtribute_095_2021.pdf First version, 2021 (application/pdf)

Related works:
Working Paper: Gender Differences in Financial Advice (2021)
Working Paper: Gender differences in financial advice (2021)
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Persistent link: https://EconPapers.repec.org/RePEc:ajk:ajkdps:095

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