The role of hormones in financial markets |
| |
Affiliation: | 1. School of Business and Accountancy, Universidad Nacional de Colombia, Colombia;2. School of Economics, Universidad Nacional de Colombia, Colombia;1. School of Maritime Economics and Management, Dalian Maritime University, China;2. School of Business, University of Leicester, Leicester, LE1 7RH, UK |
| |
Abstract: | Steroid hormones, such as testosterone, have been shown to affect risk preferences in financial traders with high levels leading to excessive risk-taking. Hormone levels, in turn, are affected by trading outcomes as well as by gender - males are more sensitive to stimuli than females. We develop a model to investigate the effects of hormones on financial market stability and trader performance. An increase in the proportion of female traders does not necessarily make markets less volatile; however, it reduces the occurrence of market crashes. Male traders on average under-perform females, although the best performing individuals are more likely to be male. |
| |
Keywords: | |
本文献已被 ScienceDirect 等数据库收录! |
|