Molecular Genetics, Risk Aversion, Return Perceptions, and Stock Market Participation
Bibliographic Data
| ID | 5818745 |
|---|---|
| Authors | Richard 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 |
| Year | 2020 |
| Publication date | 2020-08-01 |
| Open Access | No |
| Type | REPORT |
| Venue | National Bureau of Economic Research (REPOSITORY) |
| Publisher | National Bureau of Economic Research (PUBLISHER) |
| DOI | 10.3386/w27638 |
| OpenAlex | W3047735675 |
| Language | EN |
| References cited | 30 |
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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| Highly cited | No |
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