A Run-Down of Merger Target Run-Ups

The Essex Finance Centre warmly invites you to join Dr Evangelos Vagenas-Nanos for the Adam Smith Business School at the University of Glasgow as he examines the reasons behind decline in run-ups in US target firm stock returns.

  • Wed 15 May 19

    14:00 - 16:00

  • Colchester Campus


  • Event speaker

    Dr Evangelos Vagenas-Nanos, Adam Smith Business School, University of Glasgow

  • Event type

    Lectures, talks and seminars
    Essex Finance Centre Research Seminar Series

  • Event organiser

    Essex Business School

  • Contact details

    Nikolaos Vlastakis

The aim of this seminar is to discuss the effects of tighter insider trading rules on the number of run-ups observed prior to merger and acquisitions.

Seminar abstract

We show that run-ups in the US target firm stock returns preceding merger and acquisition (M&A) announcements have declined drastically over recent decades. The median target run-up declines from approximately 10% in 1980s to approximately 2% after 2010.

The negative trend in target run-up cannot be fully explained by changes in deal or target characteristics associated with deal anticipation. However, it disappears after controlling for changes in the strength of the US inside trading regulations over the research period.

When zooming in on these initial findings, we find that target run-ups reduce shortly after the enactment of more stringent insider trading rules. 

Moreover, the negative impact of insider trading rules on target run-ups is stronger for deals with a higher probability of provoking pre-announcement insider trading.

Analysis of target stakeholders' posterior probability of informed trading and a placebo test in M&A deals for Canadian firms corroborate our conclusion that more stringent insider trading regulations has reduced target run-ups.

Our results suggest that the US insider trading rules are effective at curbing pre-announcement insider trading.


This is a free event. You are welcome to bring your colleagues, classmates and friends along.

Speaker bio

Dr Evangelos Vagenas-Nanos is a Senior Lecturer in Accounting and Director of Graduate Studies at the Adam Smith Business School at the University of Glasgow.

Evangelos joined the school in 2010 as a Lecturer in Finance. Previously, he was a teaching assistant in Finance at Durham Business School. 

He gained a BA in Economics for Aristotle Univeristy (Greece) while at Durham University he obtained a MSc in Finance and Investment as well as a PhD in Finance in 2011. He also holds a Postgraduate Certificate in Teaching and Learning in Higher Education.

Evangelos' main research area of interest lie in 

  • Corporate Finance
  • Mergers and Acquisitions
  • Capital Structure
  • Behavioural Finance

Evangelos' work has been published in peer reviewed journals such as

  • Journal of Corporate Finance
  • Journal of Banking and Finance
  • Journal of Management
  • Journal of Economic Behaviour and Organisation

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