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We examine the relation between CEO military experience and insider trading in U.S. public firms. Military CEOs earn significantly lower insider trading profits than non‐military CEOs, particularly those who attained commissioned ranks or served in the Air Force, Army, or Marine Corps. The negative relation holds for both purchase and sale transactions. Military CEOs also exhibit longer investment horizons and are less likely to trade in the month preceding earnings announcements. Overall, the findings are consistent with military socialization promoting discipline, rule adherence, and ethical restraint in exploiting informational advantages for personal gain.
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Chou et al. (2026) studied this question.
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