Why are Females more risk averse then Male?
It is a common belief that females are more risk averse than their male peers. According to Wang, females have a penchant to be more risk-averse than male; many corporate companies tend to give less risky investment portfolios to female compared to male, as they believe females will gain lower returns for their business. This is a major issue for females if they want to outlive males, this means they will need more funds and financial support if they wish to retire. Having said this, not all females are risk-averse, as there are many successful female-led CEO’s who have made companies successful by investing into the high portfolio.
There have been many studies on gender differences in financial risk-taking. Risk aversion in decision-making can have an impact on company performance and their strategies. There have been some studies conducted over the years assessing the relationship between company performance and gender diversity in CEO’s. However, the results were a mixture. To conclude my survey shows that Lego has gained a competitive edge from their CSR policies however they could furthermore improve this edge by increasing how aware consumers are of these policies.