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Are Female Executives More Risk-Averse than Male Executives?

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  • Zahid Iqbal
  • Sewon O
  • H. Baek

Abstract

It is often argued that women are more risk averse than men. This paper provides additional evidence on this issue by examining the stock selling behavior of male and female executives in response to stock option awards. When corporate executives sell shares of their firm upon new stock option awards, it is an indication that they are attempting to reduce risk through diversification of their personal portfolio. More rigorous stock sales by female executives would indicate that they are more risk averse than their male counterparts. However, this paper finds that male executives are more risk averse by engaging in higher diversification-related stock sales than the female executives. It is also found that the stock sales by male executives approximate the optimal hedge ratio. Copyright International Atlantic Economic Society 2006

Suggested Citation

  • Zahid Iqbal & Sewon O & H. Baek, 2006. "Are Female Executives More Risk-Averse than Male Executives?," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 34(1), pages 63-74, March.
    • Handle: RePEc:kap:atlecj:v:34:y:2006:i:1:p:63-74
    DOI: 10.1007/s11293-006-6123-9
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    References listed on IDEAS

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    Cited by:

    1. Muravyev, Alexander & Talavera, Oleksandr & Bilyk, Olga & Grechaniuk, Bogdana, 2009. "Firm Performance and Managerial Turnover: The Case of Ukraine," IZA Discussion Papers 4372, Institute of Labor Economics (IZA).
    2. Dennis Barber, 2015. "An experimental analysis of risk and entrepreneurial attitudes of university students in the USA and Brazil," Journal of International Entrepreneurship, Springer, vol. 13(4), pages 370-389, December.
    3. Cheng, Louis T.W. & Chan, Ricky Y.K. & Leung, T.Y., 2010. "Management demography and corporate performance: Evidence from China," International Business Review, Elsevier, vol. 19(3), pages 261-275, June.

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    More about this item

    Keywords

    G34; G39;

    JEL classification:

    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • G39 - Financial Economics - - Corporate Finance and Governance - - - Other

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