The underlying physiological mechanisms of biases are not well understood. As such, we examine the impact of testosterone and cortisol levels on several commonplace investment biases using realistic trading simulations. Cortisol, the biological marker of stress, is positively related to the...

We examine the relation between testosterone, cortisol, and financial decisions in a sample of naïve investors. We find that testosterone level is positively related to excess risk-taking, whereas cortisol level is negatively related to excess risk-taking (correlation coefficient [r]: 0.75 and...

In this paper, we examine the relationship between sleep and financial risk taking. The results indicate that individuals who have better sleep display less distortion of probability, are less susceptible to the present bias, and have a lower discounting rate. Specifically, individuals with...

Cover -- Half Title -- Title Page -- Copyright Page -- Dedication -- Table of Contents -- List of illustrations -- 1. Biology and Psychology in Finance -- Nature versus Nurture -- What Can We Learn from the Financial Decisions of Twins? -- Investment of Adoptees and the Human Genome -- Do Men...

"Why do people's financial and economic preferences vary so widely? 'Nurture' variables such as socioeconomic factors partially explain these differences, but scientists have been discovering that 'nature' also plays an important role. This is the first book to bring together these scientific...

Narcissistic CEOs tend to act to preserve a favorable public image. We content that in their avoidance of behaviors that might harm their reputation as a great leader, a narcissistic CEO minimizes actions that cause corporate misconduct. Consistent with our hypothesis, we find empirical evidence...

We explore the impact of momentum trading in the NFL betting market at the aggregate weekly level. Bettors prefer to bet on momentum rather than mean reversion in the totals market. The effect is strongest when they bet that the total points scored by both teams will be under the betting line...