Sample Accounting Paper on Global Investment Behavior of Women


People typically invest their money where they will get the best returns and the security of their assets. Investment activities are vital for the progress and growth of a society. Individual investors have a critical part in the financial sector due to the large share of their savings accumulated in the state. The move to implement an investment is often focused on behavioral finance. Term investment involves the use of funds in all financial securities and assets to receive a return or value of money (Gitman et al. 2013). Investment has been the wealth transfer to the money-generating product prospectively. Investment is a capital investment that produces the resources required for different sectors of the economy. Investment evaluation is a challenging job, requiring significant skills and experience to assess the choices available. Besides that, a smart investment decision will lead to higher returns and satisfaction levels generally (Gitman et al. 2013). However, it seems challenging for women to evaluate the different choices for seeking suitable investment opportunities due to lack of knowledge, although people do not even understand where to invest and what the investment will be (Lee & Shin 2018). Therefore, it is essential to evaluate investors’ actions to recognize different benefits and drawbacks of women’s investment. Women are nowadays stable financially.

Women are actively investing their investments by evaluating different variables, such as the level of risk involved in investing, the impact of friends and family members, and the desire to invest in new and creative investment opportunities (Lee & Shin 2018).

The primary aim of this research is to present the idea of women’s investment activity and trends and to provide a thorough review of previous scientific investigations on women’s investment behavior.

Global investment Behavior of Women

Research by Bertrand, 2020, utilizes large-scale questionnaires as a tool to investigate women gaps in investment decisions. The qualitative survey query is perceived as a proper measurement of the investment risk in that it predicts actual risk-taking actions in the experiment, even after testing specific, measurable characteristics (Bertrand, 2020). It is worth noting that, while current research investigating gender disparities in financial risk behavior that uses specific techniques and tactics, they almost all suggest that females are much more risk-averse investors than males.

A recent study suggests that women prefer less risky investments and still receive higher yields on their financial assets than men (Dohmen et al. 2017). Many of these analyses do not make investment decisions through gender when mitigating possible gender gaps in expertise. Consequently, Esfandyar et al. 2017 assessed the risk-taking conduct of women investing in mutual funds while monitoring investors’ essential investment awareness. That used a United States Survey of 1900 random sample on mutual fund holders; the findings revealed that women’s mutual funds are partly due to the institutional gaps in women’s financial and investment awareness (Esfandyar et al. 2017). Additionally, women take fewer precautions than men in their financial investment choices, even when accounting for monetary or knowledge on investment, although the impact of gender on risk-taking decreases when investor financial or investment information is regulated in the regression. The varying levels of investment expertise between gender groups may partly explain the significant degree of women’s risk.

Denoting gender is very important since the trading conduct of men and women varies, and so their effect on market valuations varies. Recent research in the United States and international markets indicates that individual traders have behavioral biases in their transactions that affect asset prices, returns, and the overall market. Nevertheless, these studies do not explicitly suggest which gender has more prejudice (Esfandyar et al. 2017). For example, a number of current studies indicate that specific investors are overaggressive, but will not show whether it is men or women who may be more optimistic about their investment skills and capabilities.

Middle East Women Investment Behaviour

Today, there are very few reports that focus specifically on women’s investment behavior, while none focus on the top investment obstacles that hinder women’s involvement in investing and the primary causes that drive them to invest more. In comparison, most research on women’s investment behavior concentrates on developed markets, especially the United States. On the other hand, few investigations have been carried out in developing markets and very few in the Arab world (Kanze et al. 2020). As per the report by Fund (2017) the sensible approach of women is more prominent when taking long-term investment decisions such as retirement funds. Nevertheless, this was partially due to decreased wealth accrued, considering that they had lower wages than their male colleagues.

Nonetheless, the findings were not substantially different after adjusting demographic and economic factors (Charness & Gneezy, 2007). Women in Middle East also were found to follow a risk-aversive approach irrespective of profession, expertise, and level of competence. There was proof that a woman investor would often take a cost-aversive approach and encourage her clients to prefer lower risk and lower return investments.

Nevertheless, the strategy employed by women tends to be consistent with the principle of risk and return relationships, as proposed (Cabeza-García et al. 2019). They claim that the anticipated return of security has increased as the probability of loss decreases, and vice versa. Women investors were found to prefer more assurance and lower returns to trading (Roszkowski & Grable, 2010). Nevertheless, risk and uncertainty are viewed and perceived in the long term as a risk and an opportunity to earn greater yields.

Saudi Arabian Women Investment Behaviour

To expand and broaden the increasing discourse on gender disparities in investment behavior to also include women investors from diverse cultures, this research focuses mainly on examining the investment behavior of women working in Saudi Arabia Universities. Men in all areas do not necessarily surpass women: they are much more likely than men to provide a strategy and maintain track of the information (Cabeza-García et al. 2019). Nonetheless, in a number of countries, such as Saudi Arabia, there are places where women exhibit limitations, including in terms of making ends meet and investing, as well as in the choice and keeping of financial goods. The evidence available, albeit restricted to a limited number of states, means that women and their capacity to make life easier and save are partly linked to the disparity in socio-economic differences between the sexes.

Personal Financial Planning

Personal Financial Planning (PFP) defines personal financial objectives and funds, developing a financial strategy, and making personalized suggestions (either expressed or implied) that, when enforced, assist clients in achieving these goals. This procedure may facilitate the design of suggestions or the tracking or modify of the commitment. Personal Financial Planning provides definitive guidelines and sets enforceable criteria for members offering Personal Financial Planning information to help them meet their professional obligations.  Personal Financial Planning requires criteria designed to allow the Member to achieve the primary goal (Munohsamy, 2015). Personal Financial Planning knowledge is critical especially when undertaking a research like this. Also, it involves gathering guidelines in the context of a specification and other necessary instructions, which provides a context related to the thorough understanding of the concept and definitions. The specifications of the assertion should be described using the term. If the requirement specifies that a representative “should” take action, such action shall be necessary unless the predominant details of the case determine differently.

Doda & Fortuzi (2015) are of the opinion that customers are more likely to pursue the expertise of a financial adviser than 14 other qualified stakeholders in financial stability, like banking while searching for detailed personal financial planning (Doda & Fortuzi 2015). Murphy & Yetmar (2010) used poll information to demonstrate that, in which students decide that they’ll need to make personal financial planning; they spend much more time monitoring and developing plans. That attempt is related to higher economic power (Murphy & Yetmar 2010). Doda & Fortuzi (2015) observed a change in attitudes among women who now understand that comprehensive long-term financial planning is crucial to effective money planning and that a single advisor can incorporate all of their financial requirements into a detailed plan is more successful. Women who want to gain financial freedom when they retire or preserve properties that are mortgaged when they die risk the consequences of not having the resources to do so if no personal financial planning has been carried out (Doda & Fortuzi 2015). The personal financial planning process is an exercise in the implementation of risk management strategies at the individual level. This will include a more detailed description of the risks that women face, the correct prioritization of those risks, and the successful management of those risks (Munohsamy, 2015). It was observed that individuals appear to invest additional time handling smaller threats that they face but do not spend quality time on risks that impact their entire economic well-being. Munohsamy (2015) indicates that the resources for investment advisors to be used in the personal financial planning process will increase complexity and that business planners’ expertise will also have to increase.

Investment behavior of working women

A number of research have been carried on women’s investment behavior in terms of maturity, education, income, resources, marital status, and gender; Steelyana (2012) showed that working women prefer to take lowered investment risks. She also found that married women would prefer a retirement account to their investment market (Steelyana, 2012). Rekha & Vishnupriya (2019) found that more investment choices could trigger an overload of knowledge. This will confuse with making the right investment decision. They also found that individuals can be narcissistic and overstate their knowledge and expertise in making an investment decision (Rekha & Vishnupriya 2019). Steelyana (2012) found that most women are not informed of investments, mutual funds, and savings accounts. Understanding of these investments is strongly associated with education and work orientation. Ramanujam & Leela (2016) found that perhaps the attitude towards risk changes with time. The willingness and confidence to take risks are closely related to the business life of customers (Ramanujam & Leela 2016). Atchyuthan & Yogendrarajah (2017) concluded that if working women are given a variety of investment choices, they would like to choose between a middle part and a high or low significance (Atchyuthan & Yogendrarajah 2017). Ramanujam & Leela (2016) research also focused on expectations of earnings efficiency, clarity of the mechanism for preparing accounts, independence of auditors, consumers, and the usefulness of financial information (Ramanujam & Leela 2016). He observed that accounting information among working women guarantees a good investment choice rather than a quantitative approach in the long term.

Asandimitra et al. 2019 examined the investment behavior of salaried women workers with various investment choices, the factors involved in the investment selection process. It examined that salaried women frequently find both protection and high profits (Asandimitra et al. 2019). Chowdhury (2009) carried out an overview of the financial literacy and investment strategies of women in the workforce in Chittagong intending to identify the financial education and investment behavior of these women in Kerala while using qualitative and quantitative data qualitatively (Chowdhury 2009). The analysis revealed that the investment conducts of women who are working are culturally conservative.

Investment behavior depends on the appropriate level of the participant. Many people speak of long-term investment. Women prefer to save for social welfare and long-term reasons. On average, women are found to be more risk-averse than men, according to studies summarized in Chowdhury (2009). Based on these investment studies, working women’s financial decision-making and investment behavior are focused not only on the growing preference but also on aspects like monetary intuition, expertise in investment activities, financial priorities, and the risk tolerance of each woman investor.

Gender is not completely an impact on investment decisions, but other factors influence investor behavior. Financial insight, understanding of investment strategies, experience in continuing investment activities, and financial objectives have become some of the main factors that affect investor behavior (Alrabadi et al. 2018). Investment conduct could then be very special to each entity and personalized based on their specific financial objectives.

Chapter Summary

The chapter included a general overview of the literature review, but this was important in order to see what previous research had been found in this area and their importance in responding to the research questions in this report. The chapter also discussed a few of the different frameworks and research observations behind the study of women’s investment behavior.




Alrabadi, D. W. H., Al-Abdallah, S. Y., & Aljarayesh, N. I. A. (2018). Behavioral biases and investment performance: Does gender matter? Evidence from Amman Stock Exchange. Jordan Journal of Economic Sciences5(1), 77-92.

Asandimitra, N., Aji, T. S., & Kautsar, A. (2019). Financial Behavior of Working Women in Investment Decision-Making. Information Management and Business Review11(2 (I)), 10-20.

Bertrand, M. (2020, May). Gender in the Twenty-First Century. In AEA Papers and Proceedings (Vol. 110, pp. 1-24).

Cabeza-García, L., Del Brio, E. B., & Oscanoa-Victorio, M. L. (2019, November). Female financial inclusion and its impacts on inclusive economic development. In Women’s Studies International Forum (Vol. 77, p. 102300). Pergamon.

Chowdhury, E. K. (2009). Investment Behavior: A Study on Working Women in Chittagong. Nature70, 80.


Dohmen, T., Falk, A., Golsteyn, B. H., Huffman, D., & Sunde, U. (2017). Risk attitudes in women investment

Esfandyar, S., Rahnamay Roodposhti, F., Hashem, N., & Reza, V. H. (2017). The objectives, strategies, and characteristics of individual investors in the Tehran stock exchange. Indonesian Capital Market Review, 11-26.

Fund, A. M. (2017). Arab Pension Systems.

Gitman, L. J., Joehnk, M. D., & Billingsley, R. (2013). Personal financial planning. Cengage Learning.

Kanze, D., Huang, L., Conley, M. A., & Higgins, E. T. (2018). We ask men to win and women not to lose: Closing the gender gap in startup funding. Academy of Management Journal61(2), 586-614.

Lee, I., & Shin, Y. J. (2018). Fintech: Ecosystem, business models, investment decisions, and challenges. Business Horizons61(1), 35-46.

Munohsamy, T. (2015). Personal Financial Management.

Murphy, D. S., & Yetmar, S. (2010). Personal financial planning attitudes: a preliminary study of graduate students. Management Research Review.

Ramanujam, V., & Leela, L. (2016). A study on investment literacy towards investment decision making behavior of working women. International Journal in Management & Social Science4(5), 28-34.
Atchyuthan, N., & Yogendrarajah, R. (2017). A study of investment awareness and preference of working women in jaffna district in sri Lanka. Asia Pacific Journal of Research, ISSN (Print), 2320-5504.