A recent study by the University of Essex has turned traditional gender stereotypes on their head, revealing that men are more likely than women to let emotional news influence their financial risk-taking.
The Study
The research, which involved 186 participants, found that men who watched emotional news stories were more likely to avoid financial risks, even when those decisions had no connection to the news content. In contrast, women’s financial decisions remained unaffected by emotional news.
Challenging Traditional Stereotypes
These findings challenge the long-held stereotype that women are more emotional and prone to making impulsive decisions. Instead, the study suggests that men may be more vulnerable to emotional bias when it comes to financial decision-making.
Implications for Financial Advice
The study’s lead researcher, Dr. Nikhil Masters, believes that these findings could have significant implications for financial advice. “We don’t make choices in a vacuum,” he said. “A cooling-off period might be crucial after encountering emotionally charged situations, especially for life-changing financial commitments like buying a home or large investments.”
Future Research Directions
The research team is now keen to investigate why men are more affected by emotional news than women. One possible explanation is that women generally score higher on emotional intelligence tests, which could help them manage their emotions more effectively.
Reference
Masters, N., Lloyd, T., & Starmer, C. (2024). Do emotional carryover effects carry over? Journal of Behavioral and Experimental Economics, 102312. DOI: 10.1016/j.socec.2024.102312
Share Your Thoughts
Do these findings surprise you? How do you think emotional intelligence plays a role in financial decision-making? Share your thoughts in the comments below!
