Empirical analysis of insider trading in recent brazilian mergers and acquisitions
Keywords: Insider Trading, Merger and Acquisitions, Abnormal Return, Market Behavior Shares
AbstractInsider trading creates opportunities for some agents in the market to profit in detriment of others thereby transferring wealth between shareholders. Announcement of a merger or acquisition is an opportunity for this practice as it usually causes significant price changes and impacts stock market expectations of these agents. An analysis was made to detect insider trading in recent mergers and acquisitions by large Brazilian companies, An Event Study searched for abnormal returns and compared averages of variables signaling behavior in the market (liquidity) for common and preferred stocks as well as American Depositary Receipts of ten companies. Empirical analysis identified insider trading by abnormal returns and volumes of trading with increased liquidity prior to announcement of the event.
Download data is not yet available.
How to Cite
Camargos, M., Romero, J., & Barbosa, F. (2008). Empirical analysis of insider trading in recent brazilian mergers and acquisitions . REGE Revista De Gestão, 15(4), 55-70. https://doi.org/10.5700/issn.2177-8736.rege.2008.36653