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Pre-bid price run-ups and insider trading activity: Evidence from Canadian acquisitions

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  • Jabbour, Alain R.
  • Jalilvand, Abolhassan
  • Switzer, Jeannette A.

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  • Jabbour, Alain R. & Jalilvand, Abolhassan & Switzer, Jeannette A., 2000. "Pre-bid price run-ups and insider trading activity: Evidence from Canadian acquisitions," International Review of Financial Analysis, Elsevier, vol. 9(1), pages 21-43, February.
    • Handle: RePEc:eee:finana:v:9:y:2000:i:1:p:21-43
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    References listed on IDEAS

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    1. Thomas H. Eyssell & Nasser Arshadi, 1993. "Insiders, Outsiders, Or Trend Chasers?: An Investigation Of Pre‐Takeover Transactions In The Shares Of Target Firms," Journal of Financial Research, Southern Finance Association;Southwestern Finance Association, vol. 16(1), pages 49-59, March.
    2. Cowan, Arnold R. & Nayar, Nandkumar & Singh, Ajai K., 1990. "Stock Returns before and after Calls of Convertible Bonds," Journal of Financial and Quantitative Analysis, Cambridge University Press, vol. 25(4), pages 549-554, December.
    3. Schwert, G. William, 1996. "Markup pricing in mergers and acquisitions," Journal of Financial Economics, Elsevier, vol. 41(2), pages 153-192, June.
    4. Sanders, Ralph W. & Zdanowicz, John S., 1992. "Target Firm Abnormal Returns and Trading Volume around the Initiation of Change in Control Transactions," Journal of Financial and Quantitative Analysis, Cambridge University Press, vol. 27(1), pages 109-129, March.
    5. John Elliott & Dale Morse & Gordon Richardson, 1984. "The Association between Insider Trading and Information Announcements," RAND Journal of Economics, The RAND Corporation, vol. 15(4), pages 521-536, Winter.
    6. Meulbroek, Lisa K, 1992. "An Empirical Analysis of Illegal Insider Trading," Journal of Finance, American Finance Association, vol. 47(5), pages 1661-1699, December.
    7. Mikkelson, Wayne H. & Partch, M. Megan, 1986. "Valuation effects of security offerings and the issuance process," Journal of Financial Economics, Elsevier, vol. 15(1-2), pages 31-60.
    8. Robert Jennings, 1994. "Intraday Changes In Target Firms' Share Price And Bid-Ask Quotes Around Takeover Announcements," Journal of Financial Research, Southern Finance Association;Southwestern Finance Association, vol. 17(2), pages 255-270, June.
    9. Nasser Arshadi & Thomas H. Eyssell, 1991. "Regulatory Deterrence and Registered Insider Trading: The Case of Tender Offers," Financial Management, Financial Management Association, vol. 20(2), Summer.
    10. Seyhun, H Nejat, 1990. "Do Bidder Managers Knowingly Pay Too Much for Target Firms?," The Journal of Business, University of Chicago Press, vol. 63(4), pages 439-464, October.
    11. Keown, Arthur J & Pinkerton, John M, 1981. "Merger Announcements and Insider Trading Activity: An Empirical Investigation," Journal of Finance, American Finance Association, vol. 36(4), pages 855-869, September.
    12. Givoly, Dan & Palmon, Dan, 1985. "Insider Trading and the Exploitation of Inside Information: Some Empirical Evidence," The Journal of Business, University of Chicago Press, vol. 58(1), pages 69-87, January.
    13. Jennings, Robert, 1994. "Intraday Changes in Target Firms' Share Price and Bid-Ask Quotes around Takeover Announcements," Journal of Financial Research, Southern Finance Association;Southwestern Finance Association, vol. 17(2), pages 255-270, Summer.
    14. Calvet, A L & Lefoll, J, 1987. "Information Asymmetry and Wealth Effect of Canadian Corporate Acquisitions," The Financial Review, Eastern Finance Association, vol. 22(4), pages 415-431, November.
    15. Lee, Moon H & Bishara, Halim, 1989. "Recent Canadian Experience on the Profitability of Insider Trades," The Financial Review, Eastern Finance Association, vol. 24(2), pages 235-249, May.
    16. Jarrell, Gregg A & Poulsen, Annette B, 1989. "Stock Trading before the Announcement of Tender Offers: Insider Trading or Market Anticipation?," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 5(2), pages 225-248, Fall.
    17. Lee, Moon H. & Bishara, Halim, 1985. "Securities regulation and market efficiency," International Review of Law and Economics, Elsevier, vol. 5(2), pages 247-254, December.
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    Citations

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    Cited by:

    1. Madura, Jeff & Marciniak, Marek, 2014. "Bidder country characteristics and informed trading in U.S. targets," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 29(C), pages 256-284.
    2. Aktas, Nihat & de Bodt, Eric & Declerck, Fany & Van Oppens, Herve, 2007. "The PIN anomaly around M&A announcements," Journal of Financial Markets, Elsevier, vol. 10(2), pages 169-191, May.
    3. Styliani Panetsidou & Angelos Synapis & Ioannis Tsalavoutas, 2022. "Price run-ups and insider trading laws under different regulatory environments," Review of Quantitative Finance and Accounting, Springer, vol. 59(2), pages 601-639, August.
    4. Cao, N. & Galvani, V. & Gubellini, S., 2017. "Firm-specific stock and bond predictability: New evidence from Canada," International Review of Economics & Finance, Elsevier, vol. 51(C), pages 174-192.
    5. Michael R. King, 2009. "Prebid Run‐Ups Ahead of Canadian Takeovers: How Big Is the Problem?," Financial Management, Financial Management Association International, vol. 38(4), pages 699-726, December.
    6. Inga Chira & Jeff Madura, 2013. "Impact Of The Galleon Case On Informed Trading Before Merger Announcements," Journal of Financial Research, Southern Finance Association;Southwestern Finance Association, vol. 36(3), pages 325-346, September.
    7. Bhabra, Harjeet S. & Hossain, Ashrafee T., 2017. "Impact of SOX on the returns to targets and acquirers in corporate tender offers," The North American Journal of Economics and Finance, Elsevier, vol. 42(C), pages 1-19.
    8. Kent Baker & Shantanu Dutta & Samir Saadi, 2011. "Corporate Finance Practices in Canada: Where Do We Stand?," Multinational Finance Journal, Multinational Finance Journal, vol. 15(3-4), pages 157-192, September.
    9. Chirkova, Elena (Чиркова, Елена) & Petrov, Vladislav (Петров, Владислав), 2015. "The Diagnosis of the Insider Trading During the Conflict of Shareholders of “VimpelCom” in 2005-2013 [Диагностирование Инсайдерской Торговли В Период Конфликта Акционеров Оао «Вымпелком» В 2005—201," Ekonomicheskaya Politika / Economic Policy, Russian Presidential Academy of National Economy and Public Administration, vol. 2, pages 151-173.
    10. Michael R. King & Dan Segal, 2004. "International Cross-Listing and the Bonding Hypothesis," Staff Working Papers 04-17, Bank of Canada.
    11. Stefan Eichler & Dominik Maltritz, 2013. "An options-based approach to forecast competing bids: evidence for Canadian takeover battles," Applied Economics, Taylor & Francis Journals, vol. 45(34), pages 4805-4819, December.
    12. Adrian Pop & Diana Pop, 2014. "How fair are the fair price standards in blockholder regimes?," Working Papers hal-01076722, HAL.
    13. Rodrigues, Bruno Dore & Souza, Reinaldo Castro & Stevenson, Maxwell J., 2012. "An analysis of intraday market behaviour before takeover announcements," International Review of Financial Analysis, Elsevier, vol. 21(C), pages 23-32.
    14. Michael R. King & Dan Segal, 2003. "Valuation of Canadian- vs. U.S.-Listed Equity: Is There a Discount?," Staff Working Papers 03-6, Bank of Canada.
    15. Andreas Charitou & Christodoulos Louca & Stelios Panayides, 2007. "Cross‐Listing, Bonding Hypothesis and Corporate Governance," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 34(7‐8), pages 1281-1306, September.

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