Insider trading in takeover targets

► Examine pre-announcement trading by registered insiders in a large sample of takeover targets. ► Using D-i-D regressions, find no evidence of profitable active insider trading (i.e., no ↑ in purchases). ► Contrasts with prior findings of profitable active insider trading before other major corporate events. ► But find profitable passive insider trading (i.e., insiders ↑ net purchases by reducing sales more than purchases). ► Effect is larger in sub-samples with less uncertainty about takeover completion.