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Molecular Genetics, Risk Aversion, Return Perceptions, and Stock Market Participation

Bibliographic Data

ID5818745
AuthorsRichard W Sias (0000-0001-9279-5450, National Bureau of Economic Research), Richard Sias, Laura Starks (0000-0002-3342-1712), Laura T Starks (0000-0001-9388-069X, National Bureau of Economic Research), Harry J Turtle (0000-0003-0703-9824, National Bureau of Economic Research), Harry Turtle
Year2020
Publication date2020-08-01
Open AccessNo
TypeREPORT
VenueNational Bureau of Economic Research (REPOSITORY)
PublisherNational Bureau of Economic Research (PUBLISHER)
DOI10.3386/w27638
OpenAlexW3047735675
LanguageEN
References cited30

We show that molecular variation in DNA related to cognition, personality, health, and body shape, predicts an individual's equity market participation and risk aversion.Moreover, the molecular genetic endowments predict individuals' return perceptions, most of which we find to be strikingly biased.The genetic endowments also strongly associate with many of the investor characteristics (e.g., trust, sociability, wealth) shown to explain heterogeneity in equity market participation.Our analysis helps elucidate why financial choices are heritable and how genetic endowments can help explain the links between financial choices, risk aversion, beliefs, and other variables known to explain stock market participation

Biology · Business · Economics · Expected utility hypothesis · Financial economics · Geography · Perception · Risk Aversion · Stock (firearms · Stock market · Market Dynamics and Volatility · Neuroscience · Psychology · Genetics

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