The Testosterone Level of the CEO and Manager Financial Decisions

Since the testosterone level has a significant impact on the corporate finance managers' decisions, the higher level of testosterone in the CEO, the managers will benefit from the more aggressive policies. Therefore, the testosterone level in managers may play a key role in decisions related to corporate investments. According to this argument, the purpose of the study is to investigate the effect of the head-to-face ratio of the CEO as one of the testing criteria of testosterone levels on the financial decisions of the corporates' managers. For this purpose, a sample consisting of 63 corporates listed in the Tehran Stock Exchange was selected in 2013-2017 and was tested using a logistic regression model. The results of the first hypothesis showed that a high level of testosterone had led to an increase in the investment decisions less than the managers' capacity in line with appropriate and efficient investments in the corporate. Also, the results of the second hypothesis suggested that the high level of testosterone in the CEO had led to an increase in financial leverage over the investment opportunities.