Gender Differences in Financial Risk Aversion (The Role Of Hormones In Financial Market)

The present work encourages the exploration of the theoretical literature on the relationship between steroid hormones, the preference of financial risk and the performance of retailers (eg Dreber and Hoffman, 2007; Garbarino et al., 2011); (Apicella et al., 2008 and Coates and Page (2009), and the role of testosterone and cortisol which have organizational and activating effects on the financial risk aversion of men and women which affects their careers. (Sapienza et al., 2009, Barnea et al., 2009). Research has been done on the effects of biology and genetics on the attitudes of risks taking with regard to the sexes (Sapienza et al., 2009; Barnea et al., 2010). Even though social identity shows the stereotypical behavior society attributes to men and women (Akerlof and Kranton, 2000), manipulations byusing signs of gender identityare possible. Heterogeneous preferences and beliefs have great implications on labor market dynamics (Killingsworth 1987), financial markets (Garlean and Panageas) and macroeconomics (Chien et al., 2014). Gender heterogeneity is particularly relevant - each group includes half of the population, and there are systematic differences in the preferences of men and women, which on the other hand have great effects on economic outcomes (Cros and Gnees 2009, DellaVigna et al., 2013, Bertrand et al., 2015)