Posts tagged with: Risk taking
What doesn’t kill you will only make you more risk-loving: early-life disasters and CEO behaviour (2017)
"...the link between CEOs’ disaster experience and corporate policies has real economic consequences on firm risk and its cost of capital." Bernile, G., Bhagwat, V., Rau, P. R. The Journal...
Testosterone makes men less likely to question their impulses. (2017)
... testosterone either inhibits the process of mentally checking your work or increases the intuitive feeling that 'I'm definitely right.' Emily Velasco (staff writer) Previewing work by researchers including Prof. Colin...
The psychology and neuroscience of financial decision making. (2016)
“New data from a variety of sources (is uncovering) new facts about the cognitive processes that influence financial decision-making.” Cary Frydman, USC Marshall School of Business, Los Angeles and Colin...
Incoming UK Financial Conduct Authority (FCA) chief warns of ‘hubris risk’ in firms’ culture. (2016)
"Hubris should be classed alongside credit and liquidity risks. Jill Treanor The Guardian>Regulators, Monday 9 May 2016. Andrew Bailey (pictured), incoming chief executive of the UK’s Financial Conduct Authority (FCA),...
Overconfident CEOs are less socially responsible. (2016)
"Overconfident CEOs invest less in activities that impact positively on society… Female CEOs are significantly less overconfident than male CEOs." Barry Oliver The Conversation, 12 December 2016 Drawn from the...
The role of hormones in financial markets. (2016)
“It's been argued that financial traders are 'too male' and a more even gender balance would reduce volatility and help stabilize markets.... (Having more) female traders does not necessarily make markets less...
Double trouble: sibling rivalry and twin organizations in the 2008 credit crisis. (2014)
“… the closeness of organizational identities in twin organizations may lead to increased rivalry, narcissism and a tendency for greater risk-taking and vulnerability. Prof Mark Stein, Chair in Leadership and...
The biology of risk. (2014). By eliminating uncertainty has the Federal Reserve actually helped inflate market bubbles?
"By eliminating uncertainty in policy, has the Federal Reserve spread complacency among the financial community and actually helped inflate market bubbles? The author argues that greater transparency at the Fed ...
Cortisol shifts financial risk preferences. (2014).
"High levels of the stress hormone cortisol may contribute to the risk aversion and 'irrational pessimism' found among bankers and fund managers during financial crises Narayanan Kandasamy, Andrew S....
Performance for pay? The relation between CEO incentive compensation and future stock price performance. (2014)
“CEO pay is negatively related to future stock returns…driven by… overconfidence that leads to losses from over investment and value-destroying M&A. Michael J. Cooper, University of Utah; Huseyin Gulen, Purdue...