City Research Online

Abstract

We arranged for trained undercover men and women to pose as potential clients and visit all 65 local financial advisory firms in Hong Kong. At financial planning firms, but not at securities firms, women were more likely than men to receive advice to buy only individual or only local securities. Women clients who signaled that they were highly confident, highly risk tolerant or had a domestic outlook, were especially likely to receive this suboptimal advice. Our theoretical model explains these patterns as the result of statistical discrimination interacting with advisors’ incentives. Taste-based discrimination is unlikely to explain the results.

Publication Type:	Article
Additional Information:	© 2024 The Author(s). The Journal of Finance published by Wiley Periodicals LLC on behalf of American Finance Association. This is an open access article under the terms of the Creative Commons Attribution-NonCommercial-NoDerivs License, which permits use and distribution in any medium, provided the original work is properly cited, the use is non-commercial and no modifications or adaptations are made.
Publisher Keywords:	audit study, gender, financial advice, securities firm, financial planner, risk tolerance, confidence, geographic outlook
Subjects:	H Social Sciences > HG Finance H Social Sciences > HM Sociology H Social Sciences > HN Social history and conditions. Social problems. Social reform
Departments:	Bayes Business School > Finance
SWORD Depositor:	Symplectic Administrator

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