New research from the United Kingdom, published in the Journal of Behavioral and Experimental Economics, claims that men are far more likely than women to let negative emotions influence their financial choices, challenging long-held stereotypes about how women might be more emotional.
Scientists from the University of Essex conducted an experiment with 186 participants, who were asked to make risky financial decisions with real money. Prior to this, they were asked to watch emotionally charged news reports, to observe the impact of such images on their financial decisions.
The researchers found that men became more cautious in the face of negative news, even when these emotions had no direct connection with the decision to be made.
Women, on the other hand, proved to be surprisingly consistent and seemingly less influenced by the news stories.
“These results challenge the long-held stereotype that women are more emotional, and open new avenues for understanding how emotions influence decision-making across genders,” said lead researcher Nikhil Masters from Essex’s Department of Economics.
One of the hypotheses put forward to explain this difference is based on the concept of emotional intelligence, which refers to the ability to identify, understand and manage emotions.
A great deal of research has shown that emotions are far from being in opposition to reason: when properly managed, they can foster harmonious relationships, resolve conflicts, and inform decisions.
“Previous research has shown that emotional intelligence helps people to manage their emotions more effectively. Since women generally score higher on emotional intelligence tests, this could explain the big differences we see between men and women,” Masters highlighted.
The findings of this study could have practical implications, particularly for situations involving major financial decisions such as buying real estate or making major investments. As Masters noted: “We don’t make choices in a vacuum, so a cooling-off period might be crucial after encountering emotionally charged situations.”
Indeed, this study highlights the importance of taking emotions into account when making financial decisions, and of overcoming persistent gender stereotypes about money management. By revealing differences in the way men and women integrate their feelings into such decisions, the findings pave the way for more nuanced and tailored approaches to financial advice.