Testosterone Effects Include Irrational Behavior, Study Shows

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A recenty-published study of the Imperial College London suggests that testosterone and cortisol may trigger irrational behaviors and increase risk-taking chances among men.

According to Telegraph, the results of the study, published in the journal Scientific Reports, show that cortisol appears to spur risky investments in men involved in the financial industry, such as traders, bankers and financiers. Testosterone, meanwhile, increased their feeling of confidence with pricing trends.

"We only looked at the acute effects of the hormones in the lab. It would be interesting to measure traders' hormone levels in the real world, and also to see what the longer term effects might be," Dr. Ed Roberts, study author from Imperial College of London, said via Science Daily. 

The experimentation was only a simulation of the conditions and atmosphere of a trading floor. In the first experiment, the hormone levels of 142 males and female participants were measured as they were playing the game. According to the Benchmark Reporter, the higher the cortisol levels in men, the more risks they take. However, women were indifferent to cortisol levels, which shows that women have different stress response compared to males.

The second experimentation involved all-male participants with ages ranging from 18 to 30 years old. They were asked to observe and make calculated decisions to buy and sell assets. The volunteers' baseline hormone levels were measured in one experiment and measured again after being given a dose of either cortisol or testosterone.

The researchers found that either hormone affected the participants' decision-making skills as they were more prone to invest in risky trade patterns.  

Dr. Roberts adds that the aim of the research is to know what cortisol and testosterone can do. The data were then compared to the trading floor environment and discerned whether the "stressful" or "too competitive" environment of the floor could be affecting the hormones of the male traders and impacted their decision-making skills. 

It was found out that a competitive and stressful environment can increase the cortisol and testosterone levels of men, notes Business Standard. 

The authors of the study believe the research will be helpful for policymakers in making stable financial institutions.

"Our view is that hormonal changes can help us understand traders' behavior, particularly during periods of financial instability," Dr. Carlos Cueva, lead author from Spain's University of Alicante, said via Business Standard (BS).

Cortisol is a stress hormone that increases when the body is exposed to physical or psychological stress. Testosterone, on the other hand, is primarily a male steroid hormone that is important for male sexual and reproductive development and building muscle mass, according to Wise Geek Health.