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Do commonalities facilitate private information channels? Evidence from common gender and insider trading

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dc.contributor.authorScarlat, Elvira
dc.contributor.authorClacher, Iain
dc.contributor.authorGarcia Osma, Beatriz
dc.contributor.authorShields, Karin
dc.contributor.funderSpanish Ministry of Science
dc.contributor.rorhttps://ror.org/02jjdwm75
dc.date.accessioned2025-04-07T16:03:18Z
dc.date.available2025-04-07T16:03:18Z
dc.date.issued2021-10
dc.description.abstractWe examine insider trading profitability and common identity between insiders and top executives. We argue that common gender and the resulting social connections influence access to private information, wherby insiders benefit from greater information-sharing with top executives of the same gender. Using a large sample of US firms between 1995 and 2016, we find higher (lower) insider trading profitability for female (male) insiders in the presence of a female CEO or CFO. We also find that, in isolation, other social and professional commonalities, such as age, ethnicity, having attended the same university or having worked at the same firm also increase insider profitability, albeit to a lesser extent. Our evidence suggests that some of these commonalities enhance the common gender effect when combined with it. We examine formal interactions and find that attending meetings and serving on committees with top executives of the same gender enables private information-sharing, consistent with gender acting as an informational channel. We also document greater clustering of insiders’ trades around the trades made by common gender top executives. Our findings are consistent with flows of private information from CEOs and CFOs to less informed common gender insiders.
dc.description.peerreviewedyes
dc.description.statusPublished
dc.formatapplication/pdf
dc.identifier.citationClacher, I., Osma, B. G., Scarlat, E., & Shields, K. (2021). Do commonalities facilitate private information channels? Evidence from common gender and insider trading. Journal of Corporate Finance, 70, 102062. https://doi.org/10.1016/j.jcorpfin.2021.102062.
dc.identifier.doihttps://doi.org/10.1016/j.jcorpfin.2021.102062
dc.identifier.issn0929-1199
dc.identifier.urihttps://hdl.handle.net/20.500.14417/3718
dc.journal.titleJournal of Corporate Finance
dc.language.isoen
dc.page.total31
dc.publisherElsevier
dc.relation.departmentAccounting & Management Control
dc.relation.entityIE University
dc.relation.projectIDPID2019-111143GB-C33
dc.relation.schoolIE Business School
dc.rightsAttribution 4.0 International
dc.rights.accessRightsinfo:eu-repo/semantics/openAccess
dc.rights.urihttps://creativecommons.org/licenses/by/4.0/deed
dc.subject.keywordGender
dc.subject.keywordInformation asymmetry
dc.subject.keywordInsider trading
dc.subject.keywordSocial commonalities
dc.subject.keywordHomophily
dc.titleDo commonalities facilitate private information channels? Evidence from common gender and insider trading
dc.typeinfo:eu-repo/semantics/article
dc.version.typeinfo:eu-repo/semantics/publishedVersion
dc.volume.number70
dspace.entity.typePublication
relation.isAuthorOfPublicationfa9d454c-3e45-433f-ae08-4f72b9806c95
relation.isAuthorOfPublication.latestForDiscoveryfa9d454c-3e45-433f-ae08-4f72b9806c95
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