It’s no longer a shock that gender plays a role in decision making, but a new study done by an ISU faculty member suggests that it may also influence how people invest their money.

Tahira Hira, executive assistant to the president and professor of consumer economics, teamed with Cazilia Loibl, an assistant professor in the department of consumer sciences at Ohio State University, to study the differing attitudes and behavior of men and women when investing money.

Unsurprisingly to Hira, the study revealed that women were more likely than men to play it safe in their investment decisions.

“I hypothesized that women might be less comfortable taking risks,” Hira said.

The data for Hira and Loibl’s study were collected from approximately 900 phone interviews conducted by Iowa State’s Center for Survey Statistics and Methodology over the course of five months.

About 65 percent of the respondents were men and 35 percent were women.

According to the researchers’ report, “Gender Differences in Investment Behavior,” men were more likely to describe investing as “exciting,” while women were more likely to call it “stressful, difficult and time consuming.”

Women were also less likely to describe themselves as being confident and knowledgeable about investing.

Although both men and women considered risk the most important factor to consider when investing money, approximately 45 percent of men reported they would take an “above-average” risk compared to 28 percent of women.

Hira said there are two possible reasons for women’s less confident responses.

“The first is that our [women’s] knowledge level may be low,” she said. “The second is that our experience may not be enough.”

Jeff and Mary Gibbons, the husband and wife team of Gibbons Suntken Investment Consulting, 2080 Quail Ridge Road, see differences in men’s and women’s investing behaviors on a daily basis.

“I think the way they’re [women and men] willing to take advice is different,” Mary said.

Women are more likely to seek the guidance of a financial professional, Mary said.

“I’d have to say women are better customers,” Jeff said. “They’re more willing to take the advice.”

The Gibbons also said women are conservative in their investment styles.

“They tend to be more risk averse,” Jeff said.

Mary said if a woman received a stock tip, she was more likely to do some background research before acting on it.

“Women are more deliberate in their decision making,” Mary said.

Although Hira and Loibl have only completed the first phase of their study, Hira said she thinks its implications will be far-reaching.

“If a woman herself is reading it, there will be lots of information for her to say, ‘What kind of an investor am I?'” Hira said.

Her hope is that if women can identify why they’re not confident in investing, they will learn what to do differently so they can be.

Hira also hopes people will come away from the study with a better understanding of how gender impacts investing decisions.

Hira said the next phase of the study will be a more in-depth analysis, which will establish cause and effect.