The role of board gender on the profitability of insider trading

Zhong, Tian, Faff, Robert, Hodgson, Allan and Yao, Lee J. (2014) The role of board gender on the profitability of insider trading. International Journal of Accounting and Information Management, 22 3: 180-193. doi:10.1108/IJAIM-03-2013-0020

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Author Zhong, Tian
Faff, Robert
Hodgson, Allan
Yao, Lee J.
Title The role of board gender on the profitability of insider trading
Journal name International Journal of Accounting and Information Management   Check publisher's open access policy
ISSN 1834-7649
Publication date 2014
Year available 2014
Sub-type Article (original research)
DOI 10.1108/IJAIM-03-2013-0020
Open Access Status
Volume 22
Issue 3
Start page 180
End page 193
Total pages 14
Place of publication Bingley, United Kingdom
Publisher Emerald Group Publishing
Collection year 2015
Language eng
Formatted abstract
– The purpose of this paper is to examine the impact of female board membership on the profitability of corporate insider purchases.

– The authors use a classic event study approach. They measure abnormal returns around the insider purchase events, and analyze the cross-sectional variation of this market impact in terms of female board membership, controlling for a range of other factors.

– The authors find a strong positive market reaction in the aggregated data, and after decomposing transactions according to gender, they find that the profitability of female directors is statistically indistinguishable from their male counterparts. Additionally, they find evidence that with more females sitting on the board, the profitability of the male directors decreases but the profitability of their female counterparts does not.

– The authors’ findings suggest that having females on the board increases corporate governance of male directors. The results also suggest that female directors are no less inclined to exploit the asymmetric information advantage provided by board membership.
Keyword Corporate governance
Insider trading
Board gender
Q-Index Code C1
Q-Index Status Confirmed Code
Institutional Status UQ

Document type: Journal Article
Sub-type: Article (original research)
Collections: Official 2015 Collection
UQ Business School Publications
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Created: Tue, 10 Mar 2015, 16:13:05 EST by Karen Morgan on behalf of UQ Business School