The Fetal Origins Hypothesis in Finance: Prenatal Environment, the Gender Gap, and Investor Behavior

• 成果类型: Article
• 署名作者: Cronqvist, Henrik; Previtero, Alessandro; Siegel, Stephan; White, Roderick E.
• 署名单位: University of Miami; Western University (University of Western Ontario); University of Washington; University of Washington Seattle
• 刊物名称: REVIEW OF FINANCIAL STUDIES
• ISSN/ISSBN: 0893-9454
• DOI: 10.1093/rfs/hhv065
• 发表日期: 2016
• 页码: 739
• 关键词: lifetime portfolio selection; birth-weight; socioeconomic-status; genetic-variation; risk-aversion; in-utero; HEALTH; testosterone; exposure; MARKET

摘要

We find that differences in individuals' prenatal environments 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 adulthood. We also examine birth weight. Those with higher birth weight are more likely to participate in the stock market, whereas those with lower birth weight tend to prefer portfolios with higher volatility and skewness, consistent with compensatory behavior. Our results contribute to the understanding of how the prenatal environment shapes an individual's behavior in financial markets later in life.