EMPIRICAL EXAMINATION OF GENDER-BASED RISK AVERSION IN INVESTMENT DECISION-MAKING: A BEHAVIORAL FINANCE FRAMEWORK

• Linh Pham

  Department of Business Analytics, Da Nang University of Science and Technology, Da Nang, Vietnam

  Author

This study investigates gender-based differences in risk aversion within investment decision-making through the lens of behavioral finance. The research synthesizes theoretical and empirical insights to evaluate whether women exhibit higher risk aversion than men and how such behavioral disparities influence investment outcomes. Drawing on established experimental and survey-based literature, the study constructs a behavioral framework integrating psychological, demographic, and institutional determinants of risk preferences. Evidence from prior studies suggests that gender significantly influences financial decision-making, with women generally demonstrating more conservative investment behavior compared to men, often attributed to overconfidence effects in male investors and higher loss sensitivity among female investors (Barber & Odean, 2001; Eckel & Grossman, 2008). The analysis further explores how professional environment and contextual factors moderate these differences, particularly in investment teams and organizational settings (Niessen & Ruenzi, 2007). The study employs a conceptual synthesis methodology, systematically integrating findings from experimental economics, financial psychology, and empirical investment studies to build a comprehensive behavioral interpretation model. Results indicate that gender-based differences in risk aversion are consistent but not absolute, as contextual, cultural, and experience-based variables significantly mediate investment behavior. The paper contributes to behavioral finance literature by refining the understanding of gendered financial decision-making and offering implications for portfolio management, financial advisory systems, and policy formulation.

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