Men are more likely to let emotional news influence financial decisions, while women remain unaffected. This is according to a new study by the University of Essex.
The research revealed that after watching negative news, men avoided risky financial decisions. This occurred even if the risks were unrelated to the news.
Conversely, women showed no change in their financial choices. They maintained steady decision-making patterns regardless of the emotional tone of the news.
STUDY CHALLENGES GENDER STEREOTYPES
“These findings challenge the stereotype that women are more emotional than men,” said lead researcher Dr. Nikhil Masters from Essex’s Department of Economics. Financial decisions clearly show a different impact of emotions on men and women.
The study highlights how emotional responses shape financial behaviors differently across genders.
REAL-LIFE EXPERIMENT YIELDS SURPRISING RESULTS
The study involved 186 participants who watched emotional news clips before making real-money financial decisions.
Men showed clear tendencies to avoid financial risks after viewing distressing content. Women, on the other hand, remained unaffected by the emotional nature of the news when making financial decisions.
HIGH-STAKES DECISIONS MAY REQUIRE COOLING-OFF PERIOD
Dr. Masters suggested that these results could influence financial advisory practices.
“Decisions aren’t made in isolation. He explained that it might be essential to take a cooling-off period after emotional encounters. This is important for major financial commitments like buying a home or investing,” he explained. Proper financial decisions should consider emotional states.
Why Are Men More Affected?
The research team includes experts from the University of Nottingham and Bournemouth University. They plan to investigate why men are more susceptible to emotional carryover.
One possible explanation is emotional intelligence. “Studies show women often score higher in emotional intelligence, which might help them manage their emotions better than men,” Dr. Masters noted. These findings have an impact on financial decisions.
IMPLICATIONS FOR FINANCE AND MENTAL HEALTH
Understanding emotional influences on decision-making could reshape financial advice. This is especially true for men. They may unconsciously alter their strategies based on unrelated emotional experiences. Knowing this can help tailor financial decisions effectively.
The researchers emphasized that financial professionals could tailor their guidance to account for these gender differences. This approach fosters more stable long-term investment strategies.
NEXT STEPS FOR RESEARCH
Future studies will explore how factors like upbringing, personality, and career environment contribute to these gender disparities in emotional decision-making.
Dr. Masters hopes this research will pave the way for more inclusive financial strategies that recognize emotional responses as key components of economic behavior. This will ultimately help improve financial decisions.