Do Financial Knowledge and Financial Experience Affect the Gender Risk Taking Attitude?

Abstract

In today’s advance and complex financial world financial literacy is essential for male and female. The study analyzed the effects of financial knowledge and financial experience on risk taking attitude of male and females of two major cities namely Rawalpindi and Islamabad by utilizing the results of survey from the questionnaire. From the results, it was found that with an increase in financial experience and financial knowledge of male investors, their risk taking propensity is expected to increase. However for females, the risk taking propensity is likely to increase with an increase in financial knowledge and it expected to decrease with increase in financial experience. The reason for such negative relation between financial experience and risk aversion propensity may be “over-cautiousness”

Keywords: Financial Knowledge, financial experience, gender, risk taking attitude