Abstract

http://ssrn.com/abstract=2409500
 


 



Financial Markets and Genetic Variation


Eric Cardella


Texas Tech University

Ivalina Kalcheva


University of California, Riverside (UCR) - Department of Finance and Management Science

Danjue Shang


University of Arizona

May 1, 2015


Abstract:     
It is well documented that there is substantial variation in the level of financial development across countries. In this paper, we investigate the extent to which a deep-rooted characteristic – a country’s genetic variation – contributes to the variation in financial markets across countries. Extending the argument put forth by Ashraf and Galor (2013), we predict a hump-shaped relation between genetic variation and financial market size at the county level. Using data from almost 100 countries, our cross-sectional analysis reveals results that are consistent with our prediction, specifically for equities markets. Our results are robust to the inclusion of several controls for factors that have been previously shown to impact financial markets across countries, as well as the inclusion of several country-level cultural dimensions.

Number of Pages in PDF File: 54

Keywords: financial development, genetic diversity

JEL Classification: G1, G2, O1, O4, O5


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Date posted: March 16, 2014 ; Last revised: May 4, 2015

Suggested Citation

Cardella, Eric and Kalcheva, Ivalina and Shang, Danjue, Financial Markets and Genetic Variation (May 1, 2015). Available at SSRN: http://ssrn.com/abstract=2409500 or http://dx.doi.org/10.2139/ssrn.2409500

Contact Information

Eric Cardella
Texas Tech University ( email )
Rawls College of Business
Lubbock, TX 79409
United States
Ivalina Kalcheva (Contact Author)
University of California, Riverside (UCR) - Department of Finance and Management Science ( email )
900 University Avenue
Riverside, CA 92521
United States
Danjue Shang
University of Arizona ( email )
Department of Finance
Eller College of Management
Tucson, AZ 85721
United States
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