Posts tagged with: Risk taking

"New research suggests market bubbles are driven by a biological impulse to predict others’ behaviour ... people are more likely to overvalue assets in a bubble ...   Benedetto De Martino,...

On days when London City traders made above-average profits, their testosterone levels went up. At the same time, cortisol levels were sensitive to the volatility in the market, which is...

There is something disturbingly compelling about reading the emails and instant messages exchanged by Barclays bankers in the process of rigging interest rates for their own gain.   Ian Leslie...

"Coates identifies a feedback loop between testosterone and success that dramatically lowers the fear of risk in men. Similarly, intense failure leads to a rise in levels of cortisol that lowers...

"Although leaders should be enocuraged to be confident, there is a risk in encouraging overconfidence. In fact, leaders should try to keep their confidence fairly low when it is necessary...

"..overconfident managers use less external finance .. CEOs who grew up during the Great Depression are averse to debt .. CEOs with military experience pursue more aggressive policies   Malmendier, U., University...

"Power can exacerbate the tendency for people to overweight their own initial judgment, such that the most powerful decision makers can also be the least accurate.   See, K.E., Morrison,...

"In 2009, British Petroleum (BP) executives confidently down-played potential risks associated with their Gulf of Mexico oil rig, assuring regulators that it was virtually impossible for a major accident to...

Dr John Coates discusses the study of hormone levels in City traders which indicates increased testosterone associated with success leading to tendency to take bigger risks; cyclical process: higher testosterone, bigger...

"Gender inequality has been an issue in the City for years, but now 'neuroeconomics' is proving the point beyond doubt: hormonally-driven young men should not be left alone in charge...