Insider Trading and Gender

37 Pages Posted: 25 Oct 2019

See all articles by B. Espen Eckbo

B. Espen Eckbo

Tuck School of Business at Dartmouth; European Corporate Governance Institute (ECGI)

Bernt Arne Ødegaard

University of Stavanger

Date Written: October 24, 2019

Abstract

We provide comprehensive, gender-based estimates of the performance of primary insiders' non-routine trades on the Oslo Stock Exchange. Regardless of gender, the time-series of insider holdings fail to indicate that insiders "buy low and sell high". However, there is evidence that the dramatic increase in the network of female directors following Norway's 2005 board gender-balancing law has increased the market reaction to female insider purchases. Moreover, female insider purchases spike following the market crash in 2008, both absolutely and relative to male insiders, which contradicts the conventional view that females are more risk averse than males.

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

JEL Classification: G14, M14

Suggested Citation

Eckbo, B. Espen and Ødegaard, Bernt Arne, Insider Trading and Gender (October 24, 2019). Tuck School of Business Working Paper No. 3475061. Available at SSRN: https://ssrn.com/abstract=3475061 or http://dx.doi.org/10.2139/ssrn.3475061

B. Espen Eckbo (Contact Author)

Tuck School of Business at Dartmouth ( email )

Hanover, NH 03755
United States
603-646-3953 (Phone)
603-646-3805 (Fax)

HOME PAGE: http://www.tuck.dartmouth.edu/eckbo

European Corporate Governance Institute (ECGI)

c/o ECARES ULB CP 114
B-1050 Brussels
Belgium

Bernt Arne Ødegaard

University of Stavanger ( email )

UiS Business School
Stavanger, NO-4036
Norway

HOME PAGE: http://www1.uis.no/ansatt/odegaard

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