Date Added: Sep 2009
The author's investigate gender differences in insider trading behavior of senior corporate executives in the U.S. between 1975 and 2008. It's found that, on average, both female and male executives make positive profits from insider trading. Males, however, earn about twice as much as females and also trade more than females. All these results also hold for the sub-sample of very top executives. The results are consistent with the view that female executives have a disadvantage relative to males in accessing inside information even if they have equal formal status. The authors are able to rule out gender differences in dispositional factors such as overconfidence and risk-aversion as sole explanations for the results.