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Stature, Obesity, and Portfolio Choice

Author

Listed:
  • Jawad M. Addoum

    (Charles H. Dyson School of Applied Economics and Management, Cornell University, Ithaca, New York 14853)

  • George Korniotis

    (School of Business Administration, University of Miami, Coral Gables, Florida 33124)

  • Alok Kumar

    (School of Business Administration, University of Miami, Coral Gables, Florida 33124)

Abstract

Using multiple U.S. and European data sources, we show that observed physical attributes are related to participation in financial markets. Specifically, we find that individuals who are relatively tall and of normal weight are more likely to hold stocks in their financial portfolios. We consider several potential mechanisms that could drive the relation between physical attributes and portfolio decisions. We find that teenage social experiences as well as genetic and prenatal endowments that are fixed at birth are the two channels through which height affects financial decisions. Furthermore, we find that the relation between body mass index and portfolio decisions is largely driven by education and race.

Suggested Citation

  • Jawad M. Addoum & George Korniotis & Alok Kumar, 2017. "Stature, Obesity, and Portfolio Choice," Management Science, INFORMS, vol. 63(10), pages 3393-3413, October.
    • Handle: RePEc:inm:ormnsc:v:63:y:2017:i:10:p:3393-3413
    DOI: 10.1287/mnsc.2016.2508
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