Personality and gender differences in revealed risk preference: evidence from Ghana

Purpose: The purpose of this paper is to investigate gender differences in risk aversion and determine the effect of personality traits on risk aversion from an African country context. Design/methodology/approach: The study combined both descriptive and analytical designs, and employed t-test, Pearson’s χ² and binary logistic regression as the main analytical techniques. Data for the analysis were obtained from the World Bank’s Skills toward Employment and Productivity survey on Ghana. Findings: Results of the study revealed systematic differences in personality and gender and their associations with risk aversion. Specifically, women were found to be more risk averse than men. Differences in personality also showed that females reported higher levels of personality in all but one of the Big Five personality traits – extraversion. In addition to gender, age and education, the personality traits of conscientiousness and stability were the main predictors of the likelihood of being risk averse. Although personality differences existed between male and female, the interaction terms between gender and personality factors were not statistically significant. Originality/value: The paper departs from the extant literature on developed countries and western cultures to add to the understanding on how individual differences account for variation in revealed risk preferences.