Web of Science (Emerging Sources Citation Index)

Document Type: Review Article

Author

Department of Accounting, Islamic Azad University of Kerman, Kerman, Iran

Abstract

Financial behaviors such as risk-taking highly depend on brain function. On the other hand, the brain is affected by various physiological, biological, environmental, genetic, and other related factors. One of the important factors that overshadow financial behavior is the chemistry and biochemistry of the brain, which the effect of hormones on brain function falls within this area. Hormones are chemicals with receptors all over the body including brain, which affect risk taking behavior, assessment, attitude and other factors which lead to changes in decision making. In the last three decades, researchers in financial science, economics, neuroscience, neuroeconomics, and other fields have examined the effects of various biological factors including hormones and neurotransmitters on decision making, risk attitude, risk assessment, both in humans and other animals to find experimental results for assessing the relation of biological factors and financial behaviors. The present study reviews some of the most important studies conducted in the recent decade on the period of 2010-2019 concerning the chemical effects of the two hormones of testosterone and cortisol on people financial behavior.

Graphical Abstract

Keywords

Main Subjects

[1] Ogaki, Masao, Saori C. Tanaka. "What Is Behavioral Economics?." In Behavioral Economics, pp. 3-22. Springer, Singapore, 2017.

[2] C.L. Apicella, J.M. Carré, A. Dreber, Adaptive Human Behavior and Physiology, 2015, 1, 358-385.

[3] Nadler, Amos, Paul J. Zak. "Hormones and economic decisions." In Neuroeconomics, pp. 41-66. Springer, Berlin, Heidelberg, 2016.

[4] Y. Wu, J. Liao, S. Zilioli, Y. Wu, H. Deng, H. Li, P.N. Tobler, Psychoneuroendocrinology, 2019, 108, 127-134.

[5] Reuter, Martin, Christian Montag. "Neuroeconomics—An Introduction." In Neuroeconomics, pp. 1-10. Springer, Berlin, Heidelberg, 2016.

[6] J.M. Coates, M. Gurnell, Z. Sarnyai, Philosophical Transactions of the Royal Society B: Biological Sciences, 2010, 365, 331-343.

[7] J. Herbert, Frontiers in Behavioral Neuroscience, 2018, 12, 101.

[8] Reuter, Martin, Christian Montag. "Neuroeconomics—An Introduction." In Neuroeconomics, pp. 1-10. Springer, Berlin, Heidelberg, 2016.

[9] Y. Wu, J. Liao, S. Zilioli, Y. Wu, H. Deng, H. Li, P.N. Tobler, Psychoneuroendocrinology, 2019, 108, 127-134.

[10] J. Coates, M. Gurnell, Z. Sarnyai. "From molecule to market." In The Leadership Hubris Epidemic, pp. 25-56. Palgrave Macmillan, Cham, 2018.

[11] P.W. Speiser, P.C. White. Clinical endocrinology, 1998, 49, 411-417.

[12] J.M. Coates, M. Gurnell, Z. Sarnyai, Philosophical Transactions of the Royal Society B: Biological Sciences, 2010, 365, 331-343.

[13] D.R. Carney, A.J. Cuddy, A.J. Yap, Psychological science, 2010, 21, 1363-1368.

[14] S.J. Stanton, O.D.A. Mullette-Gillman, R.E. McLaurin, C.M. Kuhn, K.S. LaBar, M.L. Platt, S.A. Huettel, Psychological science, 2011, 22, 447-453.

[15] P. Branas-Garza, A. Rustichini, PloS one, 2011, 6,e29842.

[16] Z.A.O. de Macks, B.G. Moor, S. Overgaauw, B. Güroğlu, R.E. Dahl, E.A. Crone, Developmental Cognitive Neuroscience, 2011, 1, 506-516.

[17] M. Wibral, T. Dohmen, D. Klingmüller, , B. Weber, A. Falk, PloS one, 2012, 7,e46774.

[18] G. Charness, U. Gneezy, Journal of Economic Behavior & Organization, 2012, 83, 50-58.

[19] C.L. Apicella, A. Dreber, J. Mollerstrom,Psychoneuroendocrinology, 2014, 39, 58-64.

[20] J.S. Peper, , P.C.M. Koolschijn, E.A. Crone, Journal of cognitive neuroscience, 2013, 25, 2141-2150.

[21] K.L. Evans, E. Hampson, Personality and Individual Differences, 2014, 61, 57-62.

[22] S. Zilioli, N.V. Watson, Psychoneuroendocrinology, 2014, 47, 1-9.

[23] B.R.Braams, A.C. van Duijvenvoorde, J. S. Peper, E.A. Crone, Journal of Neuroscience, 2015, 35, 7226-7238.

[24] C. Cueva, R.E. Roberts, T. Spencer, N. Rani, , M. Tempest, P.N. Tobler, A. Rustichini, Scientific reports, 2015, 5, 1-16.

[25] C.L. Apicella, J.M. Carré, A. Dreber, Adaptive Human Behavior and Physiology, 2015, 1, 358-385.

[26] R. Ronay, J.M. Tybur, D. van Huijstee, M. Morssinkhof, Comprehensive Results in Social Psychology, 2017, 2, 28-43.

[27] K.M. Smith, C.L. Apicella, Hormones and Behavior, 2017, 92, 172-181.

[28] G. Alarcón, A. Cservenka, B.J. Nagel, Brain and cognition, 2017, 111, 51-62.

[29] Cardoos, Stephanie L., Ahna Ballonoff Suleiman, Megan Johnson, Wouter van den Bos, Stephen P. Hinshaw, and Ronald E. Dahl. "Social status strategy in early adolescent girls: Testosterone and value-based decision making." Psychoneuroendocrinology 81, 2017,14-21.

[30] A. Nadler, P. Jiao, C.J. Johnson, V. Alexander, P.J. Zak, Management Science, 2018, 64, 4032-4051.

[31] G. Danese, E. Fernandes, N.V. Watson, S. Zilioli, Frontiers in behavioral neuroscience, 2017, 11, 68.

[32] Z. Xie, L. Page, B. Hardy, Frontiers in behavioral neuroscience, 2017, 11, 246.

[33] W. Bönte, V.D. Procher, D. Urbig, M. Voracek, Frontiers in behavioral neuroscience, 2017, 11, 238.

[34] J. Herbert, Frontiers in Behavioral Neuroscience, 2018, 12, 101.

[35] J.R. Nofsinger, F.M. Patterson, C.A. Shank, Economics & Human Biology, 2018, 29, 1-16.

[36] J. Kurath, R. Mata, Neuroscience & Biobehavioral Reviews, 2018, 90, 428-446.

[37] P. Brañas‐Garza, M.M. Galizzi, J. Nieboer, International Economic Review, 2018, 59, 1131-1157.

[38] P.S. Dalton, S. Ghosal, Frontiers in behavioral neuroscience, 2018, 12, 5.

[39] K. Millet, F. Buehler, Frontiers in behavioral neuroscience, 2018, 11, 254.

[40] Y. Wu, J. Liao, S. Zilioli, Y. Wu, H. Deng, H. Li, P.N. Tobler, Psychoneuroendocrinology, 2019, 108, 127-134.

[41] A. Alacreu‐Crespo, R. Costa, D. Abad‐Tortosa, V. Hidalgo, A. Salvador, M.Á. Serrano, Journal of Behavioral Decision Making, 2019, 32(5), 550-563.

[42] T.J. Dekkers, J.A.A. van Rentergem, B. Meijer, A. Popma, E. Wagemaker, H.M. Huizenga, Neuroscience & Biobehavioral Reviews, 2019, 96, 250-271.

[43] D.R. Carney, A.J. Cuddy, A.J. Yap, Psychological science, 2010, 21, 1363-1368.

[44] J.M. Coates, M. Gurnell, Z. Sarnyai, Philosophical Transactions of the Royal Society B: Biological Sciences, 2010, 365, 331-343.

[45] Zuckerman, Marvin. Behavioral expressions and biosocial bases of sensation seeking. Cambridge university press, 1994.

[46] S. Shabani, M. Dehghani, M. Hedayati, O. Rezaei, International Journal of Psychophysiology, 2011, 81, 225-229.

[47] M. Zalewski, L.J. Lengua, C.J. Kiff, P.A. Fisher, Child Psychiatry & Human Development, 2012, 43, 924-942.

[48] M. Tops, M.A. Boksem, Psychophysiology, 2011, 48, 723-732.

[49] S. Pabst, M. Brand, O.T. Wolf, Behavioural brain research, 2013, 250, 39-45.

[50] S.B. Daughters, S.M. Gorka, A. Matusiewicz, K. Anderson, Journal of abnormal child psychology, 2013, 41, 749-758.

[51] Z. Vaghri, M. Guhn, J. Weinberg, R.E. Grunau, W. Yu, C. Hertzman, Psychoneuroendocrinology, 2013, 38, 331-340.

[52] Z. Vaghri, M. Guhn, J. Weinberg, R.E. Grunau, W. Yu, C. Hertzman, Psychoneuroendocrinology, 2013, 38, 331-340.

[53] J.A. Weller, T.W. Buchanan, C. Shackleford, A. Morganstern, J.J. Hartman, J. Yuska, N.L. Denburg, Psychology and aging, 2014, 29, 271.

[54] M.S. Finy, K. Bresin, D.L. Korol, E. Verona, Development and psychopathology, 2014, 26, 1093-1111.

[55] C. Cueva, R.E. Roberts, T. Spencer, N. Rani, , M. Tempest, P.N. Tobler, A. Rustichini, Scientific reports, 2015, 5, 1-16.

[56] P.H. Mehta, K.M. Welker, S. Zilioli, J.M. Carré, Psychoneuroendocrinology, 2015, 56, 88-99.

[57] S. Bendahan, L. Goette, J. Thoresen, L. Loued‐Khenissi, F. Hollis, C. Sandi, European journal of neuroscience, 2017, 45, 877-885.

[58] S. Ceccato, B.M. Kudielka, C. Schwieren, Frontiers in psychology, 2016, 6, 2036.

[59] L.J. Samuel, D.L. Roth, B.S. Schwartz, R.J. Thorpe, T.A. Glass, The Journals of Gerontology: Series B, 2018, 73, 468-476.

[60] L.M. Kluen, A. Agorastos, K. Wiedemann, L. Schwabe, Psychoneuroendocrinology, 2017, 84, 181-189.

[61] G. Danese, E. Fernandes, N.V. Watson, S. Zilioli, Frontiers in behavioral neuroscience, 2017, 11, 68.

[62] E. Barel, S. Shahrabani, O. Tzischinsky, Evolutionary psychology, 2017, 15, 1474704917697333.

[63] Z. Margittai, G. Nave, M. Van Wingerden, A. Schnitzler, L. Schwabe, T. Kalenscher, Neuropsychopharmacology, 2018, 43, 334-341.

[64] J. Kurath, R. Mata, Neuroscience & Biobehavioral Reviews, 2018, 90, 428-446.

[65] A. Alacreu‐Crespo, R. Costa, D. Abad‐Tortosa, V. Hidalgo, A. Salvador, M.Á. Serrano, Journal of Behavioral Decision Making, 2019, 32, 550-563.

[66] Du, Jacquelyn, Ifat Levy. "Examining the Effect of Stress on Decision Making Under Risk and Ambiguity." (2019).

[67] E. Cettolin, P.S. Dalton, W.J. Kop, W. Zhang, Experimental Economics, 2019, 1-21.

[68] Q. Zhang, J. Ma, U. Nater, Frontiers in Human Neuroscience, 2019, 13, 415.

[69] A. Samimi, Progress in Chemical and Biochemical Research, 2020, 130-134.

[70] A. Samimi, Progress in Chemical and Biochemical Research, 2020, 3, 140-146. doi: 10.33945/SAMI/PCBR.2020.2.8

[71] Zak, Paul J. "The neuroeconomics of trust." In Renaissance in behavioral economics, pp. 31-47. Routledge, 2007.

[72] A. Beytollahi, H. Zeinali, Iranian Journal of Management Studies, 2020, 13, 69-93.