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Serotonergic Genotypes, Neuroticism, and Financial Choices

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  • Camelia M Kuhnen
  • Gregory R Samanez-Larkin
  • Brian Knutson

Abstract

Life financial outcomes carry a significant heritable component, but the mechanisms by which genes influence financial choices remain unclear. Focusing on a polymorphism in the promoter region of the serotonin transporter gene (5-HTTLPR), we found that individuals possessing the short allele of this gene invested less in equities, were less engaged in actively making investment decisions, and had fewer credit lines. Short allele carriers also showed higher levels of the personality trait neuroticism, despite not differing from others with respect to cognitive skills, education, or wealth. Mediation analysis suggested that the presence of the 5-HTTLPR short allele decreased real life measures of financial risk taking through its influence on neuroticism. These findings show that 5-HTTLPR short allele carriers avoid risky and complex financial choices due to negative emotional reactions, and have implications for understanding and managing individual differences in financial choice.

Suggested Citation

  • Camelia M Kuhnen & Gregory R Samanez-Larkin & Brian Knutson, 2013. "Serotonergic Genotypes, Neuroticism, and Financial Choices," PLOS ONE, Public Library of Science, vol. 8(1), pages 1-9, January.
    • Handle: RePEc:plo:pone00:0054632
    DOI: 10.1371/journal.pone.0054632
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    References listed on IDEAS

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    1. De Neve, Jan-Emmanuel & Fowler, James H., 2014. "Credit card borrowing and the monoamine oxidase A (MAOA) gene," Journal of Economic Behavior & Organization, Elsevier, vol. 107(PB), pages 428-439.
    2. DeVault, Luke & Sias, Richard, 2017. "Hedge fund politics and portfolios," Journal of Banking & Finance, Elsevier, vol. 75(C), pages 80-97.
    3. Bernardo Nardi & Alessandra Marini & Chiara Turchi & Emidio Arimatea & Adriano Tagliabracci & Cesario Bellantuono, 2013. "Role of 5-HTTLPR Polymorphism in the Development of the Inward/Outward Personality Organization: A Genetic Association Study," PLOS ONE, Public Library of Science, vol. 8(12), pages 1-8, December.
    4. Eugenio Proto & Andrew J. Oswald, 2017. "National Happiness and Genetic Distance: A Cautious Exploration," Economic Journal, Royal Economic Society, vol. 127(604), pages 2127-2152, September.
    5. Steven F. Lehrer & Weili Ding, 2017. "Are genetic markers of interest for economic research?," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 6(1), pages 1-23, December.
    6. Brooks, Chris & Williams, Louis, 2021. "The impact of personality traits on attitude to financial risk," Research in International Business and Finance, Elsevier, vol. 58(C).
    7. Mosca, Irene & McCrory, Cathal, 2016. "Personality and wealth accumulation among older couples: Do dispositional characteristics pay dividends?," Journal of Economic Psychology, Elsevier, vol. 56(C), pages 1-19.
    8. Gianpaolo Parise & Kim Peijnenburg, 2017. "Understanding the determinants of financial outcomes and choices: the role of noncognitive abilities," BIS Working Papers 640, Bank for International Settlements.
    9. Anum Khan & Muhammad Shujaat Mubarik, 2022. "Measuring the role of neurotransmitters in investment decision: A proposed constructs," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 27(1), pages 258-274, January.

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