Emotional news stories significantly influence men’s financial decision-making, according to a new study conducted by the University of Essex. The research reveals that after viewing negative news, men were more likely to shy away from financial risks, even when the decisions had no direct connection to the news content.
The study challenges traditional stereotypes about emotional decision-making, long associated more with women. “These results overturn the common belief that women are more emotional in their choices,” said Dr. Nikhil Masters, lead researcher from the university’s department of economics.
The research involved 186 participants who were shown emotionally charged news stories before being asked to make real-money financial decisions. Interestingly, while the emotional tone of the news did not alter women’s risk-taking behaviors, men displayed a marked tendency to adopt more cautious financial strategies.
The findings suggest that men’s financial decisions are more susceptible to emotional spillover than previously thought, a revelation with potential implications for high-stakes financial planning. “We don’t make decisions in a vacuum. A cooling-off period may be critical after exposure to emotionally charged situations,” Dr. Masters explained.
He emphasized the importance of this approach for major financial commitments, such as purchasing a home or making significant investments. “Taking time to emotionally reset could help ensure more rational decision-making in such life-altering moments.”
The study, conducted in collaboration with researchers from Nottingham and Bournemouth universities, highlights the need for further investigation into why men, but not women, are affected by these emotional carryover effects. The team aims to explore the underlying psychological and neurological mechanisms behind this phenomenon in future research.
This groundbreaking work could pave the way for tailored advice in financial decision-making, helping individuals navigate emotional influences and make more informed choices.
