Publication Type

Journal Article

Version

publishedVersion

Publication Date

10-2024

Abstract

We arranged for trained undercover men and women to pose as potential clients and visit all 65 local financial advisory firms in Hong Kong. At financial planning firms, but not at securities firms, women were more likely than men to receive advice to buy only individual or only local securities. Female clients who signaled high confidence, high risk tolerance, or a domestic outlook were especially likely to receive this suboptimal advice. Our theoretical model explains these patterns as a result of statis-tical discrimination interacting with advisors’ incentives. Taste-based discrimination is unlikely to explain the results.

Keywords

audit study, gender, financial advice, securities firm, financial planner, risk tolerance, confidence, geographic outlook

Discipline

Finance | Finance and Financial Management | Gender and Sexuality

Research Areas

Finance

Areas of Excellence

Finance and Financial Markets

Publication

Journal of Finance

Volume

79

Issue

5

First Page

2905

Last Page

3677

ISSN

0022-1082

Identifier

10.1111/jofi.13366

Publisher

Wiley

Copyright Owner and License

Authors

Additional URL

https://doi.org/10.1111/jofi.13366

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