Insider Trading, Risk Aversion, and Gender

Abstract

We analyze three decades of primary insiders' non-routine trades on the Oslo Stock Exchange and test for gender-based differences in risk-aversion and access to inside information. Long-run returns-based and holdings-based performance measures are statistically insignificant. However, there is some evidence of a positive female-specific director network information effect of Norway's board gender-balancing law, which significantly increased female director networks. Female insider purchases increased significantly immediately after the financial crisis, both absolutely and in relative terms, suggesting that these female directors and executives are no more risk-averse than their male colleagues.

Keywords: insider trading, gender, risk aversion, portfolio performance, director network, board gender-balancing

JEL Classification: G14, M14