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Biology and Selection into Entrepreneurship—The Relevance of Prenatal Testosterone Exposure

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  • Werner Bönte
  • Vivien D. Procher
  • Diemo Urbig

Abstract

This study examines the relationship between prenatal testosterone exposure (PTE) and selection into entrepreneurship. We argue that the relationship between PTE and entrepreneurial intent is positive and mediated by general and domain–specific risk–taking related to financial investment and professional career. Using the second–to–fourth digit ratio (2D:4D) as noninvasive retrospective marker for PTE, we identify two–step mediation effects of PTE on entrepreneurial intent through both general and domain–specific risk–taking. To account for possible socialization–based effects, we control for gender and parental self–employment. Applying ordinary least squares (OLS) regression analyses and structural equation models, we provide empirical evidence for a biological association between 2D:4D and entrepreneurial intent.

Suggested Citation

  • Werner Bönte & Vivien D. Procher & Diemo Urbig, 2016. "Biology and Selection into Entrepreneurship—The Relevance of Prenatal Testosterone Exposure," Entrepreneurship Theory and Practice, , vol. 40(5), pages 1121-1148, September.
    • Handle: RePEc:sae:entthe:v:40:y:2016:i:5:p:1121-1148
    DOI: 10.1111/etap.12165
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    1. Elle Parslow & Eva Ranehill & Niklas Zethraeus & Liselott Blomberg & Bo Schoultz & Angelica Lindén Hirschberg & Magnus Johannesson & Anna Dreber, 2019. "The digit ratio (2D:4D) and economic preferences: no robust associations in a sample of 330 women," Journal of the Economic Science Association, Springer;Economic Science Association, vol. 5(2), pages 149-169, December.
    2. Neyse, Levent & Vieider, Ferdinand M. & Ring, Patrick & Probst, Catharina & Kaernbach, Christian & Eimeren, Thilo van & Schmidt, Ulrich, 2020. "Risk attitudes and digit ratio (2D:4D): Evidence from prospect theory," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, issue 60, pages 29-51.
    3. Justin R. Hall & Selen Savas-Hall & Eric H. Shaw, 2023. "A deductive approach to a systematic review of entrepreneurship literature," Management Review Quarterly, Springer, vol. 73(3), pages 987-1016, September.
    4. Brañas-Garza, Pablo & Chowdhury, Subhasish M. & Espín, Antonio M. & Nieboer, Jeroen, 2023. "‘Born this Way’? Prenatal exposure to testosterone may determine behavior in competition and conflict," Journal of Economic Psychology, Elsevier, vol. 96(C).
    5. Fossen, Frank M. & Neyse, Levent & Johannesson, Magnus & Dreber, Anna, 2022. "2D:4D and Self-Employment: A Preregistered Replication Study in a Large General Population Sample," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 46(1), pages 21-43.
    6. Schipper, Burkhard C., 2023. "Sex hormones and choice under risk," Journal of Economic Psychology, Elsevier, vol. 96(C).
    7. Diemo Urbig & Werner Bönte & Vivien D. Procher & Sandro Lombardo, 2020. "Entrepreneurs embrace competition: evidence from a lab-in-the-field study," Small Business Economics, Springer, vol. 55(1), pages 193-214, June.
    8. Nicos Nicolaou & Phillip H. Phan & Ute Stephan, 2021. "The Biological Perspective in Entrepreneurship Research," Entrepreneurship Theory and Practice, , vol. 45(1), pages 3-17, January.
    9. Neyse, Levent & Johannesson, Magnus & Dreber, Anna, 2021. "2D:4D does not predict economic preferences: Evidence from a large, representative sample," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 185, pages 390-401.
    10. Michela Loi & Manuel Castriotta & Saulo Dubard Barbosa & Maria Chiara Di Guardo & Alain Fayolle, 2024. "Entrepreneurial intention studies : A hybrid bibliometric method to identify new directions for theory and research," Post-Print hal-04325752, HAL.
    11. Williams, David W. & Wood, Matthew S. & Mitchell, J. Robert & Urbig, Diemo, 2019. "Applying experimental methods to advance entrepreneurship research: On the need for and publication of experiments," Journal of Business Venturing, Elsevier, vol. 34(2), pages 215-223.
    12. Dheer, Ratan J.S. & Lenartowicz, Tomasz, 2020. "Effect of generational status on immigrants’ intentions to start new ventures: The role of cognitions," Journal of World Business, Elsevier, vol. 55(3).
    13. Finley, Brian & Kalwij, Adriaan & Kapteyn, Arie, 2022. "Born to be wild: Second-to-fourth digit length ratio and risk preferences," Economics & Human Biology, Elsevier, vol. 47(C).
    14. Maria João Guedes & Nicos Nicolaou & Pankaj C. Patel, 2019. "Genetic distance and the difference in new firm entry between countries," Journal of Evolutionary Economics, Springer, vol. 29(3), pages 973-1016, July.

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