International Journal of Finance & Managerial Accounting

International Journal of Finance & Managerial Accounting

Risk-Taking and Optimism of Investors: investigation and analysis of the dimensions of the neurofinancial model based on the measurement of hormones with a scientometric approach

Document Type : Original Article

Authors
ahmad arian tabar 1
maryam bokharaian 2
parviz saedie 1
maryam noraei 3
1 Department of Management, Aliabad Katoul Branch, Islamic Azad University, Aliabad Katoul, Iran.
2 Department of Accounting, Aliabad Katoul Branch, Islamic Azad University, Aliabad Katoul, Iran
3 Department of Accounting, Kermanshah Branch, Islamic Azad University, Kermanshah, Iran
10.30495/ijfma.2024.77926.2175
Abstract
Since traders' decisions are influenced by various factors, the purpose of this research is to investigate the behavior of investors based on the analysis and measurement of hormones with a scientometric approach.
This research was done in two stages. In the first step, using the scientometric method, general information and experimental backgrounds of neurofinance were collected. Then the researcher measured the effect of Testosterone, T4 and TSH hormones on investors' behavior through blood tests. In the first step, the data of 47 articles downloaded from the Scopus database in Vosviewer software was analyzed to draw bibliographic maps related to them. A map of key words, authors and countries that have done the most studies were identified and presented. The annual review of articles showed that neurofinance is an emerging field in scientific research. The first work indexed in Scopus goes back to 2006. The most frequent word is "risk aversion" which has established the most connection with the words "profitability and economy". The results showed that 18 countries collaborated in writing at least 5 articles and received at least 10 citations for their articles. Hormones analysis, in the second step, is based on Data were collected through questionnaires and clinical tests and analyzed using the structural equation method.The sample includes 77 known investors. Data were analyzed with smart pls software. The results show that Testosterone is the only hormone that has a direct and significant effect on risk-taking. And TSH and T4 hormones have the opposite effect on risk taking.
Ascher, D., Da Silva, W. V., Da Veiga, C. P., & Souza, A. (2016) Neurofinance: a systematic review about a new way to looking the financial decision-making.
Amiri., M, Bejestani,S. (2015). Comparison of anxiety and stress in hypothyroid patients, Health Research Journal. 1(1)15-27.
Bossaerts, P., & Murawski, C. (2015). From behavioural economics to neuroeconomics to decision neuroscience: the ascent of biology in research on human decision making. Current opinion in behavioral sciences, 5, 37-42.
Borhani Haghighi, M., Pasand Mojdeh, H., & Alipour, F. (2017). The role of thyroid hormones in the central nervous system. The Neuroscience Journal of Shefaye Khatam, 5(4), 87-97.‏
 Ceravolo M.G.; Cerroni R.; Farina V.; Fattobene L.; Leonelli L.; Mercuri N.B.; Raggetti G. (2019). Attention allocation to financial information: The role of color and impulsivity personality trait. Frontiers in Neuroscience. 13, JUL. DOI: 10.3389/fnins.2019.00818.
Ceravolo M.G.; Farina V.; Fattobene L.; Graziano E.A.; Leonelli L.; Raggetti G. (2021). International Journal of Bank Marketing.39(7).1150-1165.doi:10.1108/IJBM-10-2020-0527.
Da Rocha, A. F. (2013). Toward a Better Understanding of the Relationship between Neurosciences and Law.Da Rocha, A. F., Da Rocha, F. T., Burattini, M. N., & Massad, E. (2010). Neurodynamics of an election. Brain research, 1351, 198-211.
Da Rocha, A. F., Vieito, J. P., & Da Rocha, F. T. (2013). Neurofinance: How do we make Financial Decisions?
Eslami Bidgoli, Gholamreza and Hamidreza Kordloui, (2009). A stage of transition from standard finance to
neurofinance, scientific research quarterly of financial engineering of portfolio management. 1(1), 19-36.
Frydman, C., Barberis, N., Camerer, C., Bossaerts, P., & Rangel, A. (2014). Using neural data to test a theory of investor behavior: An application to realization utility. The Journal of finance, 69(2), 907-946.
Frydman, C., & Camerer, C. F. (2016). The Psychology and Neuroscience of Financial Decision Making. Trends in Cognitive Sciences, 20(9), 661–675. https://doi.org/10.1016/j.tics.2016.07.003.
Gippel J.K. (2013). A revolution in finance? Australian Journal of Management.38,1.125-146. Doi: 10.1177/0312896212461034.
Huber, J., Payne, J. W., & Puto, C. (1982). Adding asymmetrically dominated alternatives: Violations of regularity and the similarity hypothesis. Journal of consumer research, 9(1), 90-98.
Kahneman, D., & Tversky, A. (2013). Prospect theory: An analysis of decision under risk. In Handbook of the fundamentals of financial decision making: Part I (pp. 99-127).
kian, A., Pourheydari, O., & Kamyab, Y. (2018). Investigating of Managers Behavior in Using Mental Accounting in Income Statement Reporting. Empirical Studies in Financial Accounting, 15(58), 1-26. doi: 10.22054/qjma.2018.9424
Kuhnen, C. M., & Knutson, B. (2005). The neural basis of financial risk taking. Neuron, 47(5), 763-770.
Mouszadeh, A. (2022).  the effectiveness of the neural financial model based on the measurement of Testosterone hormone on the attitude and decision-making of investors in the stock exchange. Financial knowledge of securities research. 15(53).161-172. [In Persian].doi: 10.30495/JFKSA.2022.20219.
Nadler, A., Jiao, P., Johnson, C. J., Alexander, V., & Zak, P. J. (2018). The bull of wall street: Experimental analysis of Testosterone and asset trading. Management Science, 64(9), 4032-4051.
Nofsinger, J. R., Patterson, F. M., & Shank,C. A. (2020). Decision-making, financial risk aversion, and behavioral biases: The role of Testosterone and stress. Economics & Human Biology, 29, 1-16. htps://doi.org/10.1016/j.ehb.2018.01.003.
Nouraei M., & Novravesh. I. (2020). Managers' risk tolerance and optimism. Accounting and Management Quarterly. 48(2), 215-231.
Payzan-LeNestour, E., Pradier, L., & Putniņš, T. J. (2023). Biased risk perceptions: Evidence from the laboratory and financial markets. Journal of Banking & Finance, 154, 106685.
Peterson, R. L. (2007). Affect and financial decision-making: How neuroscience can inform market participants. The Journal of Behavioral Finance, 8(2), 70-78.
Roberti, J. W., (2004). “A review of behavioral and biological correlates of sensation seeking,” Journal of Research in Personality, 38: 256–279.
Sapra, S., Beavin, L. E., & Zak, P. J. (2012). A combination of dopamine genes predicts success by professional Wall Street traders. PLOS ONE, 7(1). http://doi.org/10.1371/journal.pone.0030844.
Safari Gerayeli, M and Nowrozi. M (2015). Testosterone hormone level of company CEO and risk taking. Investment Knowledge, 6(24), 83-98.
Shaker A, Sihvonen J, and Sami V (2019).CEO facial masculinity and bank risk-taking.personality and individual differences 138,133-139.
Tseng, K. C. (2006). Behavioral finance, bounded rationality, neuro-finance, and traditional finance. Investment
Management and Financial Innovations, 3(4), 7-18.
Wu, C. C., Sacchet, M. D., & Knutson, B. (2012). Toward an affective neuroscience account of financial risk taking. Frontiers in Neuroscience, 6, 159.