This paper analyzes informed trading in acquiring firms through (stock) merger announcements. We show that pre …-announcement abnormal option volumes in acquiring firms strongly increase ahead of a stock merger (by approximately 300%). Furthermore, we … abnormal put than call option trading before stock merger announcements. Overall, our results support the view that top …

This paper analyzes informed trading in acquiring firms through (stock) merger announcements. We show that pre …-announcement abnormal option volumes in acquiring firms strongly increase ahead of a stock merger (by approximately 300%). Furthermore, we … abnormal put option trading before stock merger announcements. Overall, our results support the view that top executives have a …

characterised by significant banking consolidation. We show that CEO compensation is positively related to both merger growth and … non-merger internal growth, with the former relation being higher in magnitude. While CEO pay–risk sensitivity is not … significantly related to merger growth, CEO pay–performance sensitivity is negatively and significantly related to merger growth …

We analyze the incentives of CEO inside debt in the form of pensions and deferred compensation in the context of merger … merger or acquisition activity. When firms with increasing levels of CEO inside debt decide to engage in an acquisition …, those acquisitions are less likely to be diversifying. The acquisition payment in stock can increase or decrease as CEO …

decisions. Using a comprehensive pay duration measure, we find that acquisitions conducted by CEOs with long compensation …