Acquirer's Stock Movement Signals Insider Trading in Acquisition Announcements.
The study looked at whether the stock price of companies buying other companies goes up before the acquisition is announced, suggesting possible insider trading. They found that the stock price of acquiring companies does indeed move before the announcement, especially when the price changes match the expected returns after the announcement. This was seen in a sample of Canadian acquirers and targets from various countries. The type of acquisition announcement affects how much the stock price moves beforehand. This information could help focus efforts on investigating insider trading.