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We find that a significant proportion of the cross-sectional variation in the choice to own or rent is attributable to a genetic factor, while parental influence is not not found to affect this choice. We also find evidence of gene-environment interactions: The environment moderates genetic...
Persistent link: https://www.econbiz.de/10013114535
We find that several factors explain an individual investor's style, i.e., the value versus growth orientation of the investor's stock portfolio. First, we find that an investor's style has a biological basis and is partially ingrained in an investor from birth. Second, we show that an...
Persistent link: https://www.econbiz.de/10013007019
Analyzing a large sample of identical and fraternal twins matched with data on their savings behavior, we find that genetic differences explains about 33 percent of the variation in savings propensities across individuals. Each individual is born with a genetic predisposition to a specific...
Persistent link: https://www.econbiz.de/10013094457
Using data on identical and fraternal twins' complete financial portfolios, we decompose the cross-sectional variation in investor behavior. We find that a genetic factor explains about one third of the variance in stock market participation and asset allocation. Family environment has an effect...
Persistent link: https://www.econbiz.de/10013151037
For a long list of investment "biases," including lack of diversification, excessive trading, and the disposition effect, we find that genetic differences explain up to 45% of the remaining variation across individual investors, after controlling for observable individual characteristics. The...
Persistent link: https://www.econbiz.de/10013091555
We find that differences in individuals' prenatal environment explain heterogeneity in financial decisions later in life. An exogenous increase in exposure to prenatal testosterone is associated with the masculinization of financial behavior, specifically with elevated risk taking and trading in...
Persistent link: https://www.econbiz.de/10013033690
Material private information transmits through social networks. Using manually collected information on networks of alumni reunion cohorts, we show that hedge fund managers connected to directors of firms engaged in merger deals increase call option holdings on target firms before deal...
Persistent link: https://www.econbiz.de/10013243492
This paper investigates how personal connections facilitate informed option trading prior to corporate events. We identify person-to-person connections between hedge funds and companies before merger and acquisitions announcements and find that fund managers' pre-announcement option holdings...
Persistent link: https://www.econbiz.de/10012898338
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