Boys will still be boys: Gender differences in trading activity are not due to differences in (over)confidence

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Title: Boys will still be boys: Gender differences in trading activity are not due to differences in (over)confidence
Authors: Cueva, Carlos | Iturbe-Ormaetxe, Iñigo | Ponti, Giovanni | Tomás Lucas, Josefa
Research Group/s: Microeconomía Aplicada (GIMA) | Economía Laboral y Econometría (ELYE) | Análisis Económico
Center, Department or Service: Universidad de Alicante. Departamento de Fundamentos del Análisis Económico
Keywords: Overconfidence | Trade volume | Gender
Knowledge Area: Fundamentos del Análisis Económico
Issue Date: Apr-2019
Publisher: Elsevier
Citation: Journal of Economic Behavior & Organization. 2019, 160: 100-120. doi:10.1016/j.jebo.2019.02.027
Abstract: The fact that men trade more than women in financial markets has been attributed to men's overconfidence. However, evidence supporting this view is only indirect. We directly test this conjecture experimentally, by measuring confidence using monetary incentives before participants trade in a simulated market. We find that men are more confident than women in our trading task. Men also trade more, and they hold larger and less diversified portfolios than women. However, we do not find that differences in confidence explain any portion of the gender gap in trading activity. We explore alternative candidate channels such as risk aversion, financial literacy or competitiveness but find that these factors are also unlikely to play a role.
Sponsor: Financial support from Ministerio de Economía y Competitividad (ECO2015-65820-P), Ministerio de Educación, Cultura y Deporte (programa estatal de promoción del talento y su empleabilidad en I+D+i, subprograma estatal de movilidad, plan estatal de investigación científica y técnica y de innovación 2013–16) and Instituto Valenciano de Investigaciones Económicas (IVIE) is gratefully acknowledged.
ISSN: 0167-2681 (Print) | 1879-1751 (Online)
DOI: 10.1016/j.jebo.2019.02.027
Language: eng
Type: info:eu-repo/semantics/article
Rights: © 2019 Elsevier B.V.
Peer Review: si
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Appears in Collections:INV - Análisis Económico - Artículos de Revistas
INV - ELYE - Artículos de Revistas
INV - GIMA - Artículos de Revistas

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