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Study Ties Testosterone to Market Risks, Losses

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Study Ties Testosterone to Market Risks, Losses

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Study Ties Testosterone to Market Risks, Losses

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STEVE INSKEEP, host:

And today's last word in business is on the biology of the markets. And the word is hormones. An article in the publication The Proceedings of the National Academy of Sciences suggests that high testosterone levels can lead to more profit. Testosterone is linked to male aggression and sexual interest, and it also promotes confidence and risk-taking. But the study of 17 traders in London - 17 traders, now - also suggest that high testosterone can lead to bigger financial losses.

The author of this study is a former derivatives trader who felt that market booms and busts could not be explained by economics alone. He also says that women did not seem to share the same behavior as men.

Now, commenting on this study, the Cambridge Business School professor says, quote, "It would be good for both banks and the financial system if we had more women and older men in the markets."

And that's the business news on MORNING EDITION from NPR News. I'm Steve Inskeep.

RENEE MONTAGNE, host:

And I'm Renee Montagne.

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