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Contribution Details

Type Journal Article
Scope Discipline-based scholarship
Title Population diversity and financial risk-taking
Organization Unit
  • Steven Ongena
  • Manthos D. Delis
  • Evangelos V. Dioikitopoulos
Item Subtype Original Work
Refereed Yes
Status Published in final form
  • English
Journal Title Journal of Banking and Finance
Publisher Elsevier
Geographical Reach international
ISSN 0378-4266
Volume 151
Page Range 106852
Date 2023
Abstract Text We hypothesize that financial risk-taking originates in preindustrial interpersonal population diversity. We use data on immigrants residing in the United States and show that controlling for all known determinants of portfolio decisions and more than 100 control variables, diversity in the country of immigrants’ origin positively affects stock market participation and the level of risky asset holdings. Our results remain robust when instrumenting diversity with plant variety. We also identify the channels through which the effect of diversity operates (mostly individualism and human capital), but also conclude that diversity exerts an independent effect.
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Official URL
Digital Object Identifier 10.1016/j.jbankfin.2023.106852
Other Identification Number merlin-id:23691
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