Female insiders' ethics and trading profitability

Fangcheng Sun, Shantanu Dutta, Pengcheng Zhu and Wentao Ren

International Review of Financial Analysis, 2021, vol. 74, issue C

Abstract: We provide the evidence of ethical differences between female and male top managers and insiders in conducting profitable trades with their own company stocks. Using a large sample of Chinese insider trading activities, we find that female insiders trade less profitably, which can be attributed to their higher ethical values. This relationship is robust for various profitability measures and holds after addressing potential endogeneity bias. We also provide evidence that our findings are not explained by female insiders' informational disadvantage, risk aversion, managerial ability, trading experience or concerns for differential legal consequences. Our study provides a more direct evidence on the ethical differences in gender in the context of insider trading.

Keywords: Insider trade; Gender; Business ethics; Corporate fraud and misconduct (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (7)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finana:v:74:y:2021:i:c:s1057521921000533

DOI: 10.1016/j.irfa.2021.101710

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