Template-Type: ReDIF-Paper 1.0
Title: Gender Differences in Financial Advice
Author-Name: Tabea Bucher-Koenen
Author-Email: tabea.bucher-koenen@zew.de
Author-Name: Andreas Hackethal
Author-Email: hackethal@em.uni-frankfurt.de
Author-Name: Johannes Koenen
Author-Email: johannes.koenen@arc-econ.com
Author-Name: Christine Laudenbach
Author-Email: laudenbach@uni-bonn.de

Classification-JEL: G2, E2, D8
Keywords: credence goods, financial aptitude, consumer protection, financial literacy, discrimination

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 recommended
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 delegating
financial decisions, but appear unaware of associated higher costs. Evidence of stereotyping is
stronger for male advisors.

Note: 
Length: 74
Creation-Date: 2021-03
Revision-Date: 
File-URL: https://www.crctr224.de/research/discussion-papers/archive/dp273
File-Format: application/pdf
Handle: RePEc:bon:boncrc:CRCTR224_2021_273