Gender Gap in Investment Performance Revisited: The Role of Attention

Denis Davydov; Karl Eskner; Jarkko Peltomäki

doi:10.1111/eufm.12518

Gender Gap in Investment Performance Revisited: The Role of Attention

Denis Davydov, Karl Eskner, Jarkko Peltomäki^*

^*Corresponding author for this work

Finance, Helsinki

Stockholm University

Research output: Contribution to journal › Article › Scientific › peer-review

Abstract

This paper revisits the effect of gender on portfolio performance, exploring the hypothesis that investors may derive fewer benefits from increased financial attention due to disparities in financial confidence. Using data from trading accounts of over 745,000 investors, we find that the difference in investment performance between men and women depends on the level of attention they pay to their portfolios. Furthermore, our results indicate that the positive effects of investor attention are primarily attributable to young men, who appear to benefit the most from heightened attentiveness.

Original language	English
Peer-reviewed scientific journal	European Financial Management
Volume	forthcoming
ISSN	1354-7798
DOIs	https://doi.org/10.1111/eufm.12518
Publication status	E-pub ahead of print - 29.09.2024
MoE publication type	A1 Journal article - refereed

Keywords

511 Economics
Investor attention
Gender
Portfolio performance

Areas of Strength and Areas of High Potential (AoS and AoHP)

AoS: Financial management, accounting, and governance

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

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10.1111/eufm.12518

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title = "Gender Gap in Investment Performance Revisited: The Role of Attention",

abstract = "This paper revisits the effect of gender on portfolio performance, exploring the hypothesis that investors may derive fewer benefits from increased financial attention due to disparities in financial confidence. Using data from trading accounts of over 745,000 investors, we find that the difference in investment performance between men and women depends on the level of attention they pay to their portfolios. Furthermore, our results indicate that the positive effects of investor attention are primarily attributable to young men, who appear to benefit the most from heightened attentiveness.",

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N2 - This paper revisits the effect of gender on portfolio performance, exploring the hypothesis that investors may derive fewer benefits from increased financial attention due to disparities in financial confidence. Using data from trading accounts of over 745,000 investors, we find that the difference in investment performance between men and women depends on the level of attention they pay to their portfolios. Furthermore, our results indicate that the positive effects of investor attention are primarily attributable to young men, who appear to benefit the most from heightened attentiveness.

AB - This paper revisits the effect of gender on portfolio performance, exploring the hypothesis that investors may derive fewer benefits from increased financial attention due to disparities in financial confidence. Using data from trading accounts of over 745,000 investors, we find that the difference in investment performance between men and women depends on the level of attention they pay to their portfolios. Furthermore, our results indicate that the positive effects of investor attention are primarily attributable to young men, who appear to benefit the most from heightened attentiveness.

KW - 511 Economics

KW - Investor attention

KW - Gender

KW - Portfolio performance

U2 - 10.1111/eufm.12518

DO - 10.1111/eufm.12518

M3 - Article

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VL - forthcoming

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JF - European Financial Management

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Gender Gap in Investment Performance Revisited: The Role of Attention

Abstract

Keywords

Areas of Strength and Areas of High Potential (AoS and AoHP)

UN SDGs

Access to Document

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Cite this