Female company directors are better judges of longer-term company performance
Groundbreaking research by the University of Exeter Business School reveals that female company directors defy negative gender stereotyping by astutely valuing future company performance.
The stock market responds more positively to trades made by male directors in their own company stock than their female counterparts, new research reveals.
However, over the longer term (3 – 12 months), returns made by female directors’ on trades in their own company stock are at least equal to, or exceed, those of their male counterparts.
The study by the University of Exeter Business School analysed over 80,000 legal trades made by directors of companies listed on the London and AIM stock exchanges. It is commonly assumed that when a director buys shares in their own company, they believe it to be undervalued by the stock market and this frequently leads to investors buying more stocks in that company and pushing up the share price. (more…)