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Insider trading and gender

Author

Listed:
  • Eckbo, B. Espen

    (Tuck School of Business at Darthmouth College)

  • Ødegaard, Bernt Arne

    (University of Stavanger)

Abstract

We test for systematic gender-differences in trading propensity and performance using the population of primary insiders on the Oslo Stock Exchange (OSE), 1986--2016. We use Norway's 2005 board gender quota law, which nearly tripled the population of female directors, as an exogenous shock to female directors' access to information through the expanded director network. Moreover, we use differences in trading activity following the exogenous increase in trading risk caused by the 2008 financial crisis to identify gender-based differences in risk aversion. We find no significant gender-based difference in insider trading performance, whether before or after the mandatory board gender-balancing. However, we find that female insiders are significantly more likely to buy shares during the financial crisis, which is consistent with female directors and executives exhibiting less (not more) risk aversion than their male counterparts.

Suggested Citation

  • Eckbo, B. Espen & Ødegaard, Bernt Arne, 2019. "Insider trading and gender," UiS Working Papers in Economics and Finance 2019/2, University of Stavanger, revised 01 Sep 2021.
    • Handle: RePEc:hhs:stavef:2019_002
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    More about this item

    Keywords

    Insider trading; gender; risk aversion; portfolio performance; director network; board gender- balancing;
    All these keywords.

    JEL classification:

    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility

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