A recent paper written by three university professors suggests that up to 26 percent of mergers were accompanied by evidence of insider trading regarding the transaction.
Patrick Augustin of McGill University, along with New York University professors Menachem Brenner and Marti . Subrahmayam, studied patterns surrounding the finances of mergers and acquisitions between 1996 and 2012. The authors found that more than one-quarter of those deals showed evidence of insider trading via abnormal movement and volume of stock options.
Those abnormal patterns were found for both the acquiring company and the target firms.
According to reports, the Securities and Exchange Commission only investigates an average of four cases a year regarding insider trading. About 109 mergers on average occur every year.
The study found that the SEC is more likely to focus on foreign M&A deals, deals with high price tags and insider trading involving stocks instead of more sophisticated methods of trading, like options, according to reports.
The full paper can be read here.
Full content: CBC
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
FTC to Approve Exxon’s $64 Billion Deal with Pioneer Resources, Excludes
May 1, 2024 by
CPI
UK Competition Watchdog Raises Alarm Over Nvidia’s ARM Takeover
May 1, 2024 by
CPI
Sen. Klobuchar Urges Regulators to Probe Collusion in Health Care Pricing
May 1, 2024 by
CPI
Multiple States Join Tennessee’s Antitrust Lawsuit Against NCAA Over NIL Rules
May 1, 2024 by
CPI
NY AG Joins Suit Challenging NCAA’s Restrictions on Student Athlete NIL Rights
May 1, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Economics of Criminal Antitrust
Apr 19, 2024 by
CPI
Navigating Economic Expert Work in Criminal Antitrust Litigation
Apr 19, 2024 by
CPI
The Increased Importance of Economics in Cartel Cases
Apr 19, 2024 by
CPI
A Law and Economics Analysis of the Antitrust Treatment of Physician Collective Price Agreements
Apr 19, 2024 by
CPI
Information Exchange In Criminal Antitrust Cases: How Economic Testimony Can Tip The Scales
Apr 19, 2024 by
CPI