Testosterone, the reason that men are so lame, has an important effect on stock traders, according to researchers at The University of Cambridge.
The study found that while testosterone can be helpful in the short term for some, it can also lead to over-confidence and unchecked risk-taking. Stan O'Neal and Brian Hunter, say hi.
One of the authors of the study says that, "If people want to get practical, it would be good for both banks and the financial system as a whole if we had more women and older men in the markets."
At least one legendary trader is allegedly on to this. A lawsuit filed by a former junior trader at Steven Cohen's SAC Capital alleged that his boss made him take female hormone pills to curb his aggressiveness and make him a better trader. (For more on that bizarre case, check out my post from October.)
This latest study adds to the growing body of research suggesting that excessive testosterone has been responsible for some of business's great blunders. (For more on that, check out the book Testosterone Inc.: Tales of CEO's Gone Wild.)
Unfortunately, the testosterone-crazed alpha males who seems to dominate the field probably discourage more sane people from getting involved in the industry. But at least the cavemen blunders at companies like Bear Stearns and Countrywide Financial give us something to blog about.
Will Rich Ross really have a positive impact on Disney's movie operations?
Consumers sick of recession, may spend extra on holidays
Corrections, seasonality and Santa Claus
