A paper recently published by researchers at the University of Central Florida and Singapore Management University looks at the relationship between testosterone (a hormone associated with competitiveness and risk-taking) and investment performance. Using over twenty years of data on hedge-fund returns and thousands of images collected from Google, the authors find that fund managers with wider faces, a proxy for testosterone levels, tend to trade more frequently, invest in riskier securities and hold onto losing bets longer. As a result, between 1994 and 2015, high-testosterone fund managers (with an average facial width-to-height ratio of 2.10) underperformed low-testosterone ones (with an average ratio of 1.57) by 5.8% per year.
https://www.economist.com/blogs/graphicdetail/2018/02/daily-chart-13
Submitted February 21, 2018 at 05:33AM by AlexanderSupersloth http://ift.tt/2EV1vvX
