Board gender-balancing, network information, and insider trading

Following Norway's forced board gender-balancing (12/2007), which more than doubled the network of female directors, the short-term market reaction to the population of primary female insider purchases has become significantly positive. However, accounting for insiders' actual holding periods, this positive network-driven information effect does not map into positive abnormal insider trading performance. During the financial crisis period (10/2008 - 12/2010), both male and female insiders of the by then gender-balanced boards significantly increased their stock purchases. This increase, which we show does not reflect inside information, suggests that female directors are not more risk averse than their male counterparts.