Posts Tagged drive
If there’s one thing single guys are good at, it’s making fools of themselves. That’s why having an unattached CEO could mean more risk for a company’s investments, according to a recent study by two Wharton professors.
Nikolai Roussanov and Pavel Savor, assistant professors of finance at the Wharton school, recently conducted a study analyzing the correlation between company investment policy and the social positions of higher-ups. Their results suggest, among other findings, that the competitive nature of single men may even influence decisions in business management.
They even delved into matters of biology: position in social ranking directly affects one’s search for a mate. “If relative success determines ability to find a desirable mate, it may explain some of the drive to outdo the competition… [s]uch competition creates a kind of tournament, raising your tolerance for taking large financial risks.”
The question was whether such financial risk-taking would be seen in conditions with greater consequences- like managing the future of an entire company.
One study of 1,500 publicly traded companies concluded that the “CEOs [that] are single invest substantially more… in particular when it comes to investments subject to the greatest uncertainty” thus increasing the company’s exposure to risk.
Read the story here: http://bloom.bg/on1kMB
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