Testosterone has been suggested to influence individuals’ economic decision making, yet the effects of testosterone on economic behavior are not well-understood and existing research is equivocal. In response, in three studies, we examined the extent to which testosterone affected or was associated with several different facets of economic decision making. Study 1 was a double-blind, placebo-controlled, within-subjects study examining loss aversion and risk-taking (N = 26), whereas Study 2 was a larger double-blind, placebo-controlled, between-subjects study examining loss aversion and risk-taking behavior (N = 117). As a methodological compliment, Study 3 was a larger correlational design (N = 213) with a highly accurate measure of endogenous testosterone examining a wider range of economic behaviors and trait-like preferences. Broadly, the results of all three studies suggest no consistent relationship between testosterone and financial behavior or preferences. Although there were significant effects in specific cases, these findings did not replicate in other studies or would not remain significant when controlling for family-wise error rate. We consider potential contextual moderators that may determine under what circumstances testosterone affects economic decision making.
Interestingly this study contradicts what seems to be a long-held belief in behavioural finance. My concern with the study above is it seems to be low powered which is a fancy way of saying there were not many participants in each trial – 26 in the first is quite weak.
For the other side of the argument see Testosterone and Economic Risk Taking: A Review
My personal view and experience is that testosterone makes you stupid and that the evidence seems to point to female fund managers having a higher level of market outperformance than men.
A study published by Goldman Sachs found that 48% of female-managed funds outperformed from the market low in March through August, compared with 37% for all-male funds. Funds managed by females also held up better in the Covid-19 market meltdown that hit bottom in March.
During the trailing 12 months, female-managed hedge funds have outperformed, reports Chicago-based Hedge Fund Research.
Women hedge fund managers delivered nearly double the performance of men from January 2000 through May 2009, a period bookended by the dot-com meltdown and financial crisis, says a study by Hedge Fund Research. The same study found female-managed funds held up much better in 2008, falling 9.6% compared with 19% for male-run funds.
A study by McKinsey & Co. found companies with more women in top management and on boards tend to perform better. That’s not fund related, but still relevant.
More here – MarketWatch