<
https://theconversation.com/for-richer-for-poorer-how-married-ceos-are-less-prone-to-risky-investing-and-insider-trading-192852>
"They say marriage teaches patience and understanding, but might it also be
good for business ethics?
Apparently, yes. As our recent study found, a chief executive’s home life can
be a good indicator of whether or not they’ll engage in opportunistic insider
trading. Married CEOs seem to take fewer risks with their investment decisions
and are less likely to bend the rules than their unmarried counterparts.
Insider trading can be legal or illegal, depending on whether the trades are
based on public or non-public company information. But profiting from insider
trading can invite serious litigation if outside investors suspect executives
have taken advantage of inside knowledge.
Understandably, then, there is a lot of interest in how executives’ personal
characteristics and experiences might affect their management style.
Earlier research has documented how the marital status of CEOs relates to
various aspects of their jobs, such as encouraging corporate social
responsibility, the quality of financial reporting, and portfolio investment
strategies.
However, these activities and outcomes may not be entirely driven by CEO
decisions alone. In our study, we focused on identifying CEOs’ trading activity
in their own companies’ shares."
Cheers,
*** Xanni ***
--
mailto:xanni@xanadu.net Andrew Pam
http://xanadu.com.au/ Chief Scientist, Xanadu
https://glasswings.com.au/ Partner, Glass Wings
https://sericyb.com.au/ Manager, Serious Cybernetics
