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The Effectiveness of Assigned Goals in Complex Financial Decision Making and the Importance of Gender

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  • Megan Endres

Abstract

Evidence suggests that men are more confident and less risk averse in financial decision making. Researchers did not address how men and women respond differently to goals in financial decision situations, however. In the present study, men set more challenging personal goals and risked more resources than women in a complex financial decision task. Men did not report higher self-efficacy versus women. As expected, gender interacted with assigned goals to predict self-efficacy, risk behavior, and personal goals. Results concur with recent financial decision research that suggests men and women differ in their use of externally-provided information such as assigned goals. Suggestions for future research are offered and limitations are discussed. Copyright Springer 2006

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  • Megan Endres, 2006. "The Effectiveness of Assigned Goals in Complex Financial Decision Making and the Importance of Gender," Theory and Decision, Springer, vol. 61(2), pages 129-157, September.
    • Handle: RePEc:kap:theord:v:61:y:2006:i:2:p:129-157
    DOI: 10.1007/s11238-006-0006-z
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    References listed on IDEAS

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    1. Matthias Gysler & Jamie Kruse & Renate Schubert, 2002. "Ambiguity and Gender Differences in Financial Decision Making: An Experimental Examination of Competence and Confidence Effects," CER-ETH Economics working paper series 02/23, CER-ETH - Center of Economic Research (CER-ETH) at ETH Zurich.
    2. Kuhn, Kristine M. & Yockey, Mark D., 2003. "Variable pay as a risky choice: Determinants of the relative attractiveness of incentive plans," Organizational Behavior and Human Decision Processes, Elsevier, vol. 90(2), pages 323-341, March.
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    2. Eyal Lahav & Arad Nir & Erez Siniver, 2015. "Do differing pay schemes help close the gender gap in overconfidence," Economics Bulletin, AccessEcon, vol. 35(1), pages 30-36.
    3. Arvid Hoffmann & Sam Henry & Nikos Kalogeras, 2013. "Aspirations as reference points: an experimental investigation of risk behavior over time," Theory and Decision, Springer, vol. 75(2), pages 193-210, August.

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