Further, a pure emphasis on outcomes could encourage unethical behaviours, distort risk preferences, corrode organisational culture and reduce intrinsic motivation.
In previous research, steroid hormones, such as testosterone, have been shown to affect risk preferences in humans with high levels leading to greater and even irrational risk taking.
The risk preferences of bankers are influenced enormously by their hormones, and companies should acknowledge this if they want to improve the financial performance of teams.
