Financial Literacy, Risk, and Role Models: Investment Behavior Among Members of the Association of Women Business Leaders in Iceland

Abstract

This study investigates the factors influencing the investment behavior of women in senior business leadership in Iceland, focusing on the barriers that limit their participation in financial markets. Survey data from 316 members of the Association of Women Business Leaders (AWBL) provide a unique perspective on women who, in principle, possess the education, income, and networks to engage actively in investing. Drawing on an interdisciplinary framework that integrates financial literacy, risk attitudes, socialization, and institutional trust, the study tests four hypotheses. The findings show that AWBL members primarily invest in tangible and lower-risk assets, supporting H1 on gendered investment participation. Consistent with H2, women who received financial education in childhood report significantly higher confidence and are less likely to cite lack of knowledge or role models as barriers. Results also support H3, as lower-income women are more likely to identify lack of capital, risk aversion, and limited knowledge as constraints. In contrast, H4 is only partially supported: while some older participants expressed distrust in financial institutions, this factor played a less prominent role than expected. Overall, the study demonstrates that structural, psychological, and social barriers persist even among women in leadership, reinforcing the importance of early financial education, tailored investment products, and visible female role models. Theoretically, it advances gender and finance research by applying a holistic framework to an underexplored group. Practically, it highlights the need for policies that address both knowledge gaps and structural inequalities to close the gender investment gap. Unlike previous studies focusing on the general population, this paper examines women who, despite having financial capacity and access, still face structural and psychological barriers to investing.