‘Race Differences in Insiders’ Access to Information ’
by Nejat Seyhun
University of Michigan
Place: Faculty of Business Administration,
Ümit Berkman Seminar Room (MA-330)
https://zoom.us/j/6834690808
Meeting ID: 683 469 0808
Abstract
Race inequality is well-documented in literature—certain groups, for example, African-Americans, may not enjoy the same access to opportunities as their counterparts. Prior studies document that African-Americans are less likely to receive funding opportunities than whites and pay higher interest rates because of statistical discrimination and taste-based discrimination. However, less is known about race inequality in corporate leadership.
In this paper, we investigate race differences in insider trading behavior by corporate leaders of S&P 1500 companies. Investigating race differences in the profitability of insider trades of these companies enables us to evaluate whether African-American corporate executives have equal access to networks that generate valuable insider information (Inci, Narayanan Seyhun 2017 for gender) as their counterparts in similar positions.
