Emotional news stories influence financial decisions—but not equally across genders. New research from the University of Essex finds that men are more likely than women to let emotions from unrelated situations sway their willingness to take financial risks.
The study observed that after watching real-life negative news stories, men became cautious, avoiding financial risks even when the decisions had no connection to the news content. In contrast, women’s decisions remained steady and unaffected by the emotional tone of the stories.
“These findings challenge the stereotype of women as the more emotional gender,” the researchers noted. “They open new pathways for understanding how emotions influence decision-making in men and women.”
A Risk-Averse Response
The study involved 186 participants who watched emotional news clips before making risky financial decisions involving real money. While women’s choices showed no change, men displayed a clear tendency to play it safe, revealing a significant emotional carryover effect.
The findings highlight the importance of emotional context in high-stakes decisions, particularly for men. “We don’t make decisions in isolation,” the researchers said. “A cooling-off period could be essential after encountering emotionally charged situations, especially for major financial commitments like buying a house or investing large sums.”
Why the Gender Divide?
The research team, which included academics from the University of Nottingham and Bournemouth University, plans to explore why this emotional carryover is predominantly a male phenomenon.
One possible explanation lies in emotional intelligence—the ability to recognize, manage, and regulate emotions. Women generally score higher on emotional intelligence tests, which may help them compartmentalize emotions and maintain focus during decision-making.
By shedding light on how emotions influence financial behavior, the study offers practical advice: pause and reflect before making critical financial choices, especially when emotions are running high. For men, in particular, managing these emotional spillovers could lead to smarter, more objective decisions.
