Research / BFI Working PaperApr 05, 2022

A New Era of Midnight Mergers: Antitrust Risk and Investor Disclosures

John M. Barrios, Thomas Wollmann

Antitrust authorities search public documents to discover anticompetitive mergers. Thus, investor disclosures may alert them to deals that would otherwise escape scrutiny, creating disincentives for managers to divulge transactions. We study this behavior in publicly traded US companies. First, we estimate a regression discontinuity that exploits mandatory disclosure thresholds stipulated by securities law. We find that releasing information to investors poses antitrust risk. Second, we present a method for measuring undisclosed merger activity that relies on financial accounting reporting requirements. We find that undisclosed mergers total $2.3 trillion between 2002 and 2016.

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BFI Working Paper Apr 4, 2022

Does Entry Remedy Collusion? Evidence from the Generic Prescription Drug Cartel

Amanda Starc, Thomas Wollmann
Topics:  Industrial Organization, Health care