Insiders who buy and sell stocks based on private information are influenced by the social environment they are in. When insiders are part of a community with strong social connections, they are more likely to make additional purchases to help make the stock market more efficient. However, they are less likely to time their purchases for maximum profit. The main reason for this is the density of social networks and the strength of civic norms in their community. This study used a large dataset to show that social capital plays a role in insider trading behavior.