Individual investors’ trading behavior and gender difference in tolerance of sex crimes: Evidence from a natural experiment

Huasheng Gao, Zhengkai Liu and Chloe Chunliu Yang

Journal of Empirical Finance, 2023, vol. 73, issue C, 349-368

Abstract: We present evidence that males are more tolerant of sex crimes than females. We exploit a natural experiment, in which a firm’s executive rapes a nine-year-old girl. Based on individual-level stock transaction data (over 0.2 million individual investors), we show that, after this crime, females are less likely to purchase this firm’s stock than males. This result is stronger for females who are likely more averse to sex crimes. We also find that females’ intolerance of sex crimes reduces their trading profits, and that the gender difference toward sex crimes is significantly larger than the gender difference toward non-sexually-related scandals.

Keywords: Household finance; Stock trading; Individual investors; Tolerance of sex crimes; Gender difference (search for similar items in EconPapers)
JEL-codes: G41 (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (7)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:empfin:v:73:y:2023:i:c:p:349-368

DOI: 10.1016/j.jempfin.2023.08.001

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