Gender Bias Influence on Financial Decision Maker's Strategies
Keywords:
Financial decision making, Behavioral finance, psychology, Gender bias and Choice strategy
Abstract
The paper addresses the question of the possibility of decision makers’ bias in their financial decisions done on behalf of their recipient. The paper sort to document the various bias components that are largely construed to affect decision makers financial strategy. The encapsulating factors affecting financial decision makers are identified. This short and small sample paper indicates that gender bias does not influence a decision maker’s financial choice strategy, but on the other hand it finds that decision makers’ age has a negative and significant influence on losses strategy post -manipulation phase. The possible justification for this should be that our sample consists of youth aged between 19-26 years.
References
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22. Yu, L., Li, X., Tang, L., Zhang, Z., & Kou, G. (2015). Social credit: a comprehensive literature review. Financial Innovation, 1(1), 1–18. https://doi.org/10.1186/s40854-015-0005-6
23. Ziegler, F. V, & Tunney, R. J. (2015). Who’s been framed? Framing effects are reduced in financial gambles made for others. BMC Psychology, 3(9), 1–6. https://doi.org/10.1186/s40359-015-0067-2
2. Bacha, S., & Azouzi, M. A. (2019). How gender and emotions bias the credit decision-making in banking firms. Journal of Behavioral and Experimental Finance, 22, 183–191. https://doi.org/10.1016/j.jbef.2019.03.004
3. Batteux, E., Ferguson, E., & Tunney, R. J. (2019). Do our risk preferences change when we make decisions for others? A meta-analysis of self-other differences in decisions involving risk. PLoS ONE, 14(5), 1–19. https://doi.org/10.1371/journal.pone.0216566
4. Batteux, E., Ferguson, E., & Tunney, R. J. (2020). Do we make decisions for other people based on our predictions of their preferences? Evidence from financial and medical scenarios involving risk. Thinking and Reasoning, 26(2), 188–217. https://doi.org/10.1080/13546783.2019.1592779
5. Chatterjee, S., & Barcun, S. (1970). A nonparametric approach to credit screening. Journal of the American Statistical Association, 65(329), 150–154. https://doi.org/10.1080/01621459.1970.10481068
6. Deng, S., Mitsubuchi, T., Shioda, K., Shimada, T., & Sakurai, A. (2011). Combining technical analysis with sentiment analysis for stock price prediction. Proceedings - IEEE 9th International Conference on Dependable, Autonomic and Secure Computing, DASC 2011, 800–807. https://doi.org/10.1109/DASC.2011.138
7. Ifcher, J., & Zarghamee, H. (2020). Behavioral economic phenomena in decision-making for others. Journal of Economic Psychology, 77(June). https://doi.org/10.1016/j.joep.2019.06.003
8. Juanchich, M., Sirota, M., & Bonnefon, J. F. (2020). Anxiety-induced miscalculations, more than differential inhibition of intuition, explain the gender gap in cognitive reflection. Journal of Behavioral Decision Making, 33(4), 427–443. https://doi.org/10.1002/bdm.2165
9. Kahneman, D., & Tversky, A. (1979). Prospect Theory: An Analysis of Decision under Risk. Econometrica, 47(2), 263–292.
10. Liberman, N., Trope, Y., & Wakslak, C. (2007). Construal level theory and consumer behavior. Journal of Consumer Psychology, 17(2), 113–117. https://doi.org/10.1016/S1057-7408(07)70017-7
11. Losecaat Vermeer, A. B., Boksem, M. A. S., & Sanfey, A. G. (2020). Third-party decision-making under risk as a function of prior gains and losses. Journal of Economic Psychology, 77(September), 102206. https://doi.org/10.1016/j.joep.2019.102206
12. Ludwig, J., Jaudas, A., & Achtziger, A. (2020). The role of motivation and volition in economic decisions: Evidence from eye movements and pupillometry. Journal of Behavioral Decision Making, 33(2), 180–195. https://doi.org/10.1002/bdm.2152
13. Michael, J., Gutoreva, A., Lee, M. H., Tan, P. N., Bruce, E. M., Székely, M., Ankush, T., Sakaguchi, H., Walasek, L., & Ludvig, E. A. (2020). Decision-makers use social information to update their preferences but choose for others as they do for themselves. Journal of Behavioral Decision Making, 33(3), 270–286. https://doi.org/10.1002/bdm.2163
14. Mullette-Gillman, O. A., Leong, R. L. F., & Kurnianingsih, Y. A. (2015). Cognitive fatigue destabilizes economic decision making preferences and strategies. PLoS ONE, 10(7), 1–19. https://doi.org/10.1371/journal.pone.0132022
15. Polman, E., & Wu, K. (2020). Decision making for others involving risk: A review and meta-analysis. Journal of Economic Psychology, 77, 1–19. https://doi.org/10.1016/j.joep.2019.06.007
16. Skała, D., & Weill, L. (2018). Does CEO gender matter for bank risk? Economic Systems, 42(1), 64–74. https://doi.org/10.1016/j.ecosys.2017.08.005
17. Stiglitz, J. E. (1975). The Theory of Screening, Education, and the Distribution of Income. American Economic Review, 65(3), 283–300. http://www.jstor.org/stable/1804834%5Cnhttp://www.jstor.org/stable/1804834
18. Trope, Y., & Liberman, N. (2010). Construal-Level Theory of Psychological Distance. Pyschology Review, 117(2), 440–463. https://doi.org/10.1037/a0018963.Construal-Level
19. Tunney, R. J., & Ziegler, F. V. (2015). Toward a Psychology of Surrogate Decision Making. Perspectives on Psychological Science, 10(6), 880–885. https://doi.org/10.1177/1745691615598508
20. Tversky, A., & Kahneman, D. (1981). The Framing of Decisions and the Psychology of Choice. American Association for the Advancement of Science, 211(4481), 453–458.
21. Wang, T., Li, H., Zhou, X., Huang, B., & Zhu, H. (2020). Knowledge-Based Systems A prospect theory-based three-way decision model. Knowledge-Based Systems, 203, 1–16. https://doi.org/10.1016/j.knosys.2020.106129
22. Yu, L., Li, X., Tang, L., Zhang, Z., & Kou, G. (2015). Social credit: a comprehensive literature review. Financial Innovation, 1(1), 1–18. https://doi.org/10.1186/s40854-015-0005-6
23. Ziegler, F. V, & Tunney, R. J. (2015). Who’s been framed? Framing effects are reduced in financial gambles made for others. BMC Psychology, 3(9), 1–6. https://doi.org/10.1186/s40359-015-0067-2
Published
2021-08-31
How to Cite
Habimana, T., Nshimiyimana, Y. C., Gakwerere, S. K., & Benjamin, M. (2021). Gender Bias Influence on Financial Decision Maker’s Strategies. Central Asian Journal of Innovations on Tourism Management and Finance, 2(8), 58-67. https://doi.org/10.17605/cajitmf.v2i8.164
Section
Articles
Copyright (c) 2021 Theogene Habimana, Yves Claude Nshimiyimana, Samuel Kalihungu Gakwerere, Mudaheranwa Benjamin
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