Gender influence in stock recommendations by Equity Research analysts
Main Article Content
Abstract
This study seeks to empirically test the hypothesis, present in the literature, that women in their investment decisions tend to show greater risk aversion and/or a lower degree of optimism than their male counterparts through the analysis of investment recommendations by Equity Research analysts in Brazil. Based on a sample of 7496 recommendations for the main companies listed on the B3 between 2009-2021, a statistically significant effect was found in the opposite direction to that predicted: recommendations made by women tended to be more optimistic. We found that the difference is specific to sell recommendations, issued more frequently by men, and that the effect disappears when controlling for the coverage sector and institution, which suggests that the difference is due to the fact of women, who account for only 12.8% of all recommendations, focus on covering specific sectors, such as consumption.
Downloads
Metrics
Article Details
A RAE compromete-se a contribuir com a proteção dos direitos intelectuais do autor. Nesse sentido:
- adota a licença Creative Commoms BY (CC-BY) em todos os textos que publica, exceto quando houver indicação de específicos detentores dos direitos autorais e patrimoniais;
- adota software de detecção de similaridades;
- adota ações de combate ao plagio e má conduta ética, alinhada às diretrizes do Committee on Publication Ethics (COPE)
References
Adams, R. B., & Funk, P. (2012). Beyond the glass ceiling: Does gender matter?. Management science, 58(2), 219-235. https://doi.org/10.1287/mnsc.1110.1452
Adams, R. B., & Ragunathan, V. (2015). Lehman sisters. FIRN Research Paper.
ANBIMA. (2020). Raio X do Investidor 2020. Disponível em: https://www.anbima.com.br/pt_br/especial/raio-x-do-investidor-2020.htm
Aristei, D., & Gallo, M. (2022). Assessing gender gaps in financial knowledge and self-confidence: Evidence from international data. Finance Research Letters, 46, 102200. https://doi.org/10.1016/j.frl.2021.102200
Bajtelsmit, V. L., & Bernasek, A. (1996). Why do women invest differently than men?. Financial counseling and planning, 7.
Barber, B., & Odean, T. (2001). Gender, overconfidence, and common stock investment. Quarterly Journal of Economics, 116, 261-292. https://dx.doi.org/10.2139/ssrn.139415
Bhandari, G., & Deaves, R. (2006). The demographics of overconfidence. The Journal of Behavioral Finance, 7(1), 5-11. https://doi.org/10.1207/s15427579jpfm0701_2
Bjuggren, C. M., & Elert, N. (2019). Gender differences in optimism. Applied Economics, 51(47), 5160-5173. https://doi.org/10.1080/00036846.2019.1610714
Brooks, Chris et al. (2019). Experience wears the trousers: Exploring gender and attitude to financial risk. Journal of Economic Behavior & Organization, 163, 483-515. https://doi.org/10.1016/j.jebo.2019.04.026
Byrnes, J. P., Miller, D. C., & Schafer, W. D. (1999). Gender differences in risk taking: A meta-analysis. Psychological bulletin, 125(3), 367. https://doi.org/10.1037/0033-2909.125.3.367
Carneiro, L. A. (2023). Questões de género e decisões de investimento: estudo empírico para o mercado financeiro do Brasil (Doctoral dissertation). https://comum.rcaap.pt/handle/10400.26/45324
Charness, G., & Gneezy, U. (2012). Strong evidence for gender differences in risk taking. Journal of Economic Behavior & Organization, 83(1), 50-58.
Croson, R., & Gneezy, U. (2009). Gender differences in preferences. Journal of Economic literature, 47(2), 448-74. https://doi.org/10.1257/jel.47.2.448
Croson, R., Gneezy, U., & Rey-Biel, P. (2012). Gender differences in risk aversion and competition. Special Issue, Journal of Economic Behavior and Organization, 83, 1-172.
Eckel, C. C., & Grossman, P. J. (2008). Men, women and risk aversion: Experimental evidence. Handbook of experimental economics results, 1, 1061-1073. https://doi.org/10.1016/S1574-0722(07)00113-8
Graham, J. L., Cron, W., Gilly, M., & Slocum, J. (2007). A behavioral study of pricing decisions for professional services: a focus on gender. SMU Cox School of Business Research Paper, 7001.
Hovakimian, A., & Saenyasiri, E. (2010). Conflicts of Interest and Analyst Behavior: Evidence from Recent Changes in Regulation. Financial Analysts Journal, 66(4), 96-107. https://doi.org/10.2469/faj.v66.n4.6
Jacobsen, B., Lee, J. B., & Marquering, W. (2008). Are men more optimistic?. Available at SSRN 1030478.
Jianakoplos, N. A., & Bernasek, A. (1998). Are women more risk averse?. Economic inquiry, 36(4), 620-630. https://doi.org/10.1111/j.1465-7295.1998.tb01740.x
Lim, T. (2001). Rationality and analysts' forecast bias. The Journal of Finance, 56(1), 369-385. https://doi.org/10.1111/0022-1082.00329
Lin, H. W., & McNichols, M. F. (1998). Underwriting relationships, analysts' earnings forecasts and investment recommendations. Journal of Accounting and Economics, 25(1), 101-127. https://doi.org/10.1016/S0165-4101(98)00016-0
Li, X., Sullivan, R. N., Xu, D., & Gao, G. (2013). Sell-side analysts and gender: A comparison of performance, behavior, and career outcomes. Financial Analysts Journal, 69(2), 83-94. https://doi.org/10.2469/faj.v69.n2.4
Lundeberg, M. A., Fox, P. W., & Punćcohaŕ, J. (1994). Highly confident but wrong: Gender differences and similarities in confidence judgments. Journal of Educational Psychology, 86(1), 114. https://doi.org/10.1037/0022-0663.86.1.114
Malmendier, U., & Shanthikumar, D. (2014). Do Security Analysts Speak in Two Tongues? Review of Financial Studies, 27(5), 1287-1322. https://doi.org/10.1093/rfs/hhu009
Nekby, L., Thoursie, P. S., & Vahtrik, L. (2008). Gender and self-selection into a competitive environment: Are women more overconfident than men?. Economics Letters, 100(3), 405-407. https://doi.org/10.1016/j.econlet.2008.03.005
Póvoa, A. C. S., Maffezzolli, M. R., Pech, W., & da Silva, W. V. (2017). Gender Influence in the Decision-Making Process: The Ultimatum Game. RAC-Revista de Administração Contemporânea (Journal of Contemporary Administration), 21(4), 481-499. https://doi.org/10.1590/1982-7849rac2017160152
Ricciardi, V. (2011, September). The financial judgment and decision making process of women: The role of negative feelings. In Third Annual Meeting of the Academy of Behavioral Finance & Economics.