Merger Announcements and Insider Trading Activity: An Empirical Investigation Export

@article{citeulike:3253669, abstract = {This paper provides evidence of excess returns earned by investors in acquired firms prior to the first public announcement of planned mergers. The study is distinguished from earlier merger studies in its use of daily holding period returns for the 194 firms sampled. The results confirm statistically what most traders already know. Impending merger announcements are poorly held secrets, and trading on this nonpublic information abounds. Specifically, leakage of inside information is a pervasive problem occurring at a significant level up to 12 trading days prior to the first public announcement of a proposed merger.}, author = {Keown, Arthur J. and Pinkerton, John M.}, citeulike-article-id = {3253669}, citeulike-linkout-0 = {http://dx.doi.org/10.2307/2327551}, citeulike-linkout-1 = {http://www.jstor.org/stable/2327551}, doi = {10.2307/2327551}, issn = {00221082}, journal = {The Journal of Finance}, keywords = {announcements, business, capitalists, commission, consolidation, corporations, exchange, financiers, insider-trading, merger, of, rate, return, securities, states, united}, number = {4}, pages = {855--869}, posted-at = {2008-09-23 11:35:13}, priority = {2}, publisher = {Blackwell Publishing for the American Finance Association}, title = {Merger Announcements and Insider Trading Activity: An Empirical Investigation}, url = {http://dx.doi.org/10.2307/2327551}, volume = {36}, year = {1981} }

TY - JOUR ID - citeulike:3253669 L3 - citeulike-article-id:3253669 N2 - This paper provides evidence of excess returns earned by investors in acquired firms prior to the first public announcement of planned mergers. The study is distinguished from earlier merger studies in its use of daily holding period returns for the 194 firms sampled. The results confirm statistically what most traders already know. Impending merger announcements are poorly held secrets, and trading on this nonpublic information abounds. Specifically, leakage of inside information is a pervasive problem occurring at a significant level up to 12 trading days prior to the first public announcement of a proposed merger. IS - 4 JF - The Journal of Finance SN - 00221082 EP - 869 TI - Merger Announcements and Insider Trading Activity: An Empirical Investigation PB - Blackwell Publishing for the American Finance Association VL - 36 SP - 855 KW - announcements KW - business KW - capitalists KW - commission KW - consolidation KW - corporations KW - exchange KW - financiers KW - insider-trading KW - merger KW - of KW - rate KW - return KW - securities KW - states KW - united AU - Keown, Arthur AU - Pinkerton, John PY - 1981/// UR - http://dx.doi.org/10.2307/2327551 ER -