Seven Ways to Knit Your Portfolio: Is Investor Communication Neutral?

C. Boggio, E. Fornero, H.M. Prast, J. Sanders

Research output: Working paperOther research output

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Abstract

The concept of familiarity has been used in finance theory to explain apparent paradoxes in people's behavior, such as the home bias in portfolio choices. This study investigates whether (lack of) familiarity with the language of financial consumers may contribute to an explanation of the well-documented gender gap in financial decision-making. Using an interdisciplinary framework that combines insights from Behavioral Economics, Finance, Social Psychology and Applied Linguistics, we analyze the metaphors used in websites that target beginning retail investors in three different languages; Dutch, Italian and English. We find that in all three languages the metaphors used come from the same conceptual domains; namely, war, health, physical activity, game, farming and the five senses. As these domains refer to worlds that are predominantly masculine, we conclude that the language used to address financial consumers may give rise to feelings of familiarity and belonging among men, while creating feelings of distance and non- belonging among women.
Original languageEnglish
Place of PublicationTurin
PublisherCeRP - Center for Research on Pensions and Welfare Policies
Number of pages33
Volume140/14
Publication statusPublished - Oct 2015

Publication series

NameCeRP Working Paper
Volume140/14

Fingerprint

investor
communication
language
metaphor
finance theory
social psychology
website
finance
linguistics
decision making
lack
gender
trend
health
economics

Keywords

  • familiarity
  • gender gap
  • investor behavior
  • financial communication
  • cognitive metaphor theory

Cite this

Boggio, C., Fornero, E., Prast, H. M., & Sanders, J. (2015). Seven Ways to Knit Your Portfolio: Is Investor Communication Neutral? (CeRP Working Paper; Vol. 140/14). Turin: CeRP - Center for Research on Pensions and Welfare Policies.
Boggio, C. ; Fornero, E. ; Prast, H.M. ; Sanders, J. / Seven Ways to Knit Your Portfolio : Is Investor Communication Neutral?. Turin : CeRP - Center for Research on Pensions and Welfare Policies, 2015. (CeRP Working Paper).
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Boggio, C, Fornero, E, Prast, HM & Sanders, J 2015 'Seven Ways to Knit Your Portfolio: Is Investor Communication Neutral?' CeRP Working Paper, vol. 140/14, CeRP - Center for Research on Pensions and Welfare Policies, Turin.

Seven Ways to Knit Your Portfolio : Is Investor Communication Neutral? / Boggio, C.; Fornero, E.; Prast, H.M.; Sanders, J.

Turin : CeRP - Center for Research on Pensions and Welfare Policies, 2015. (CeRP Working Paper; Vol. 140/14).

Research output: Working paperOther research output

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Boggio C, Fornero E, Prast HM, Sanders J. Seven Ways to Knit Your Portfolio: Is Investor Communication Neutral? Turin: CeRP - Center for Research on Pensions and Welfare Policies. 2015 Oct. (CeRP Working Paper).