The testosterone hormone affects financiers and traders in a different way than it affects any other profession.
There’s even a rumour that when hiring women, Wall Street HR people will look for women who have higher than average testosterone levels because it means they’re more likely to take on risk, and thus (they hope), profit.
But the hormone has some down sides, too.
Testosterone levels change after a wins or a loss. Researchers found that those changes could then predict what a loser would do next.
So losers who after competing, had increased levels of testosterone, were more likely to compete again. But those who lost a competition, and had testosterone levels decrease, were less likely to compete again.
Researchers tested over 500 MBA students and they found that testosterone levels, together with risk aversion, could predict long-term career choices and financial decisions.
Those who had high levels of testosterone and weren't very risk averse, 'were more likely to choose risky careers in finance.'
In one study, researchers found that men with increased testosterone 'were 27% less generous towards strangers with money they controlled.'
Men with lower levels of testosterone were significantly more generous than men with more testosterone.
Source: Plus One
A CEO's testosterone levels affect how aggressive they pursue M&A, and how quickly they reject offers
Researchers discovered that men with increased levels of testosterone 'were more likely to use their own money punish those who were ungenerous toward them.'
The scientists concluded that 'elevated testosterone causes men to behave antisocially.'
A study at Northwestern's Kellogg School of Management showed that the presence of testosterone in a business negotiation can create a desire for more retaliation if one party (the one with testosterone) thinks they are being 'low-balled.'
The study placed men, women and women with 'higher levels of prenatal testosterone exposure' in negotiation situations where they received an unfairly low offer. Researchers found that subjects with testosterone responded almost uni formally with a similarly low offer as a sign of retaliation. When the offers were deemed 'fair' however, testosterone ceased to be an indicator.
Source: Kellogg School of Management
A study conducted in Sweden gave women testosterone boosts in order to foster more risky behaviour in them but... nothing.
The study gave rise to a theory that women should perhaps be in more control of global stock markets than men in order to make markets safer.
Wayne State University recently published the results of a study that concluded men with more testosterone are more likely to engage in competition with men with less testosterone when being presented with an attractive woman.
Source: Wayne State University
Research shows that traders who are in daily possession of more testosterone attack the day with vim, vigor and risk on their minds while traders who have higher levels of Cortisol, a hormone most associated with stress, are more cautious and less likely to make aggressive trades, and often become less successful.
A study from The Royal Society of Biological Sciences in Britain showed data that men who have children also have less testosterone in samples of their saliva than men who don't have children. The levels also vary wildly between unmarried and married men with and without children.
John Coates, a former trader turned student of nueroscience, performed an experiment on the trading floor and found out that if a trader's testosterone levels reach a little higher than the peak, their brain goes haywire.
According to Coates, 'During the dot-com bubble, people who were working with me displayed all the classic symptoms of mania: They were euphoric, delusional, and overconfident; they couldn't put a coherent sentence together; and they were unusually horny, judging from the number of lewd comments and the amount of porn that was showing up on their computer screens.'
How do you get it right? Just wait a few hours. Coates took saliva samples from traders and found that those who had higher levels of testosterone in the morning performed better in the afternoon.
Source: Discover Magazine
Testosterone is hormone that is secreted into the body and is the genetic driver to the growth and maturing of sexual organs and sexual identity. Men have higher levels of it by rule but pregnant women see spikes in the hormone during pregnancy regardless of the sex of the foetus.
Many new products are marketed to boost levels of the hormone for a variety of purposes. The benefits and dangers of such treatments are controversial and unproven.
Source: Web MD
Testing for testosterone can be done by sampling, blood, urine, saliva or male semen as the hormone is biologically pervasive and moves through the body through fluids.
Higher or lower levels in evidence can be signals of fertility or sex drive in men and menstruation issues for women. Increased levels in men are also useful in the building of muscle mass.
Source: Web MD
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