The Lehman Sisters Hypothesis: Gender Differences in Risk-taking and Insights from the 2008 Polish Currency Options Crisis

Objective: This study investigates gender differences in risk-taking behaviour, specifically in entrepreneurial decision-making, in line with the Lehman Sisters Hypothesis. The research, motivated by the 2008 Polish currency options crisis, seeks to understand the factors driving risky decisions, examining how both economic and behavioural factors – such as overconfidence and loss aversion – are influenced by the gender of the decision-maker. Research Design & Methods: A survey of entrepreneurs from the Podkarpackie voivodeship (N = 392) was conducted, focusing on behavioural risk attitudes, overconfidence bias, and economic decision-making traits. The survey also addressed behaviours during the 2008 currency options crisis. The collected data were analysed through statistical tests, decision trees, and the logit function, comparing responses between men and women. Findings: The results confirm that men were predominantly responsible for making risky option strategy decisions, often driven by overconfidence and excessive optimism, which led to underestimation of risk. Women, in contrast, were more likely to base their decisions on external advice. These findings align with the Lehman Sisters Hypothesis, suggesting that gender diversity in leadership roles may improve risk management. Implications / Recommendations: The study reinforces the recommendation to reduce gender inequality in leadership, as a greater presence of women in senior roles could contribute to more balanced risk-taking and potentially reduce the likelihood of financial crises. Contribution: This research fills a gap in the literature by exploring gender differences in decision-making during a real-world financial crisis. It highlights the role of behavioural factors such as overconfidence in men and reliance on external advice in women. Additionally, it contributes to understanding gender differences in economic behaviour, including hedging strategies, currency risk exposure, and funding sources utilised by their companies during crises.