Gender Differences in Marketing Styles
28 Pages Posted: 17 Oct 2006
Date Written: October 16, 2006
Recent research has found that men trade stocks more frequently than women and receive a lower price as a result. The behavioral finance literature attributes this greater trading activity to men's overconfidence. Women's lack of overconfidence and past agricultural economics research suggests the possibility that women may be better at marketing grain than men. This article uses actual transactions of farmers marketing wheat and also finds that men trade more often than women. Women also sell two weeks later in the marketing year. There is no direct effect of gender on price received, but by storing longer women receive 1.4 cents/bushel less than men, on average. In contrast to the arguments in previous research, we argue that men's greater number of trades can be better explained by men enjoying trading rather than by overconfidence.
Keywords: behavioral finance, cash markets, gender, marketing styles, and trading frequency
JEL Classification: G1, Q13
Suggested Citation: Suggested Citation