Stock market patterns around directors’ trades: effects of director category and gender on market timing

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Stock market patterns around directors’ trades: effects of director category and gender on market timing

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dc.contributor.author Gregory, Alan en_GB
dc.contributor.author Tharyan, Rajesh en_GB
dc.contributor.author Tonks, Ian en_GB
dc.date.accessioned 2009-11-26T14:22:27Z en_GB
dc.date.accessioned 2011-01-25T10:28:18Z en_US
dc.date.accessioned 2013-03-20T11:09:38Z
dc.date.issued 2009-07 en_GB
dc.description.abstract We examine whether directors of UK companies can time the market when they trade in their own-company stock, using a comprehensive dataset on all directors’ trades from 1994-2006 for FTSE All Share companies and AIM-listed companies. We find that in the 20 days before a director’s buy (sell) trade prices fall (rise) such that abnormal returns are -2.48% (+2.17%); in the 20 days after a directors’ buy (sell) trade, abnormal returns are 1.55% (-1.19%). We go on to examine whether the category (executive or non-executive) and the gender (male or female) of the director differ in the information they posses about their own firms, how they trade on this information and how markets respond to their trades. We test both the information hierarchy hypothesis, that more senior corporate insiders have access to better information, and also a characteristics-based trading hypothesis, that the director’s trading pattern depends on the gender of the director. We find some support for the information hierarchy hypothesis, but no difference in the trading patterns and stock market response to directors’ gender differences, after conditioning on the category of director. en_GB
dc.identifier.uri http://hdl.handle.net/10036/86943 en_GB
dc.language.iso en en_GB
dc.publisher University of Exeter Business School en_GB
dc.relation.ispartofseries Xfi Centre for Finance and Investment working papers en_GB
dc.relation.ispartofseries 09/02 en_GB
dc.relation.url http://xfi.exeter.ac.uk/workingpapers.php en_GB
dc.subject insider trading en_GB
dc.subject director trading en_GB
dc.subject gender en_GB
dc.title Stock market patterns around directors’ trades: effects of director category and gender on market timing en_GB
dc.type Working Paper en_GB
dc.date.available 2009-11-26T14:22:27Z en_GB
dc.date.available 2011-01-25T10:28:18Z en_US
dc.date.available 2013-03-20T11:09:38Z
dc.identifier.issn 1743-548X en_GB
pubs.declined 2012-12-04T13:14:50.324+0000 en_US
dc.description Working paper; first version September 2007; this version July 2009 en_GB


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