Topline
A peer-reviewed paper published Wednesday in the journal PLOS ONE Wednesday found men were more likely than women to make risky financial decisions after receiving a positive fortune telling, providing insight into the behavior behind men’s tendency to chase higher-risk investments and gamble more.
A man throws cards on a poker table.
Key Facts
A meta-analysis of three studies conducted by researchers in the Netherlands observed a significant link among men’s attitude toward taking financial risks after receiving a positive fortune reading, while the paper’s authors said the effect on women was “virtually absent.”
Researchers conducted two online studies in which a total of 693 participants were presented with positive fortunes, one of which specifically forecast future financial success, and each found that men receiving a good fortune reading scored higher on a financial risk tolerance test than men receiving a neutral fortune, while there was little observed difference on women with different readings.
An in-person study among 193 participants found that individuals receiving good fortunes were more likely to wager real money on a game of chance than those with neutral fortunes, though there was not a noticeable difference among male and female participants.
The studies were funded by the China Scholarship Council, a branch of China’s Ministry of Education, though the paper’s authors noted the source of the funding did not impact the research.
Crucial Quote
The studies also found that individuals who did not believe in superstition were still affected by the fortune readings, and the authors noted that the research “adds credence to the general idea relatively subtle processes, which decision makers may not be able or willing to recognize, can exert pronounced influences on taking financial risks.”
Key Background
Prior research has found that women are more risk averse financially, and evidence points to the discrepancy being biological: A 2009 study of 500 MBA students published in PNAS found that higher testosterone levels were associated with pursuing riskier careers and personal financial decisions. A 2008 Harvard University study similarly found that men with higher testosterone levels were more likely to make speculative investments in a stock market game. Men are also more prone to gamble than women, gambling about twice as frequently as women and about two-thirds of problem gamblers are male.
Tangent
Gambling in the U.S. soared to record levels in 2021, with casinos bringing in a record $53 billion in revenues last year, while Americans bet more than $57 billion on sports, more than double the 2020 total. A Morning Consult survey released in January found that the share of adults who regularly wagered on sports rose from 5% to 12% over the course of 2021. A majority of states now have legal sports betting.
Further Reading
Examining Gender Differences for Gambling Engagement and Gambling Problems Among Emerging Adults (National Institute of Health)
Double Dare: Why Are Male Investors More Inclined To Take Financial Risks than Female Investors? (Rice University)
Women Are Signing Up For Mobile Sports Betting Apps At A Faster Rate Than Men (Forbes)
Source: https://www.forbes.com/sites/dereksaul/2022/09/07/are-men-prone-to-riskier-money-moves-a-fortune-teller-suggests-why-in-new-study/