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Do ethical perceptions help explain under-representation of women in investment management? A comparison of students from the U.S. and China

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  • Huang, Ying Sophie
  • Jensen, Tyler K.
  • Jorgensen, Randy D.
  • Taylor, Regina M.

Abstract

Gender participation rates are very low for women in finance, particularly in investment management. Traditional explanations for gender disparity fail to explain consistently poor results in finance, but improving participation for similarly competitive fields such as law, medicine or STEM. However, evidence also suggests a negative perception of ethics in the finance profession. We propose that women may be particularly sensitive to these ethical perceptions, leading them to avoid finance careers. We survey college students about investment management ethics across the U.S. and China. Our results suggest women in the U.S. (China) tend to have pessimistic (optimistic) ethical views of investment management, compared to their male counterparts. Also, Chinese women have significantly more positive views of ethics in the investment management industry than U.S. women, while Chinese and U.S. men portray similar opinions. These findings may help explain why gender participation in investment management is highly-skewed toward men in the U.S., but more balanced in China. These results highlight that reinforcing ethical behaviors could help enhance broader participation in investment management careers in the U.S.

Suggested Citation

  • Huang, Ying Sophie & Jensen, Tyler K. & Jorgensen, Randy D. & Taylor, Regina M., 2021. "Do ethical perceptions help explain under-representation of women in investment management? A comparison of students from the U.S. and China," Pacific-Basin Finance Journal, Elsevier, vol. 70(C).
    • Handle: RePEc:eee:pacfin:v:70:y:2021:i:c:s0927538x21001761
    DOI: 10.1016/j.pacfin.2021.101669
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