An Investigation of Returns to Insider Transactions Evidence from the Istanbul Stock Exchange

Date

2011-01-01

Author

Çağdaş, Tahaoğlu
Güner, Zehra Nuray

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In this paper, the return performance of insiders of companies listed on the Istanbul Stock Exchange (ISE) from their open market transactions and that of uninformed investors (outsiders) following insider transactions announced to the public are examined by using a portfolio approach. It is found that, depending on the affiliation of the insider with the company, abnormal returns from their sale transactions last over longer periods than their purchase transactions. Furthermore, outsiders can also earn abnormal returns by mimicking sales of affiliated shareholders of a company. Findings of this study imply that the ISE is neither Semi Strong nor Strong Form Efficient.

Subject Keywords

Insider trading, Emerging market, Istanbul Stock Exchange, ISE, Market efficiency, İçeriden öğrenen ticaret, Gelişmekte olan piyasa, İstanbul Menkul Kıymetler Borsası, İMKB, Piyasa etkinliği

URI

https://hdl.handle.net/11511/39931

Journal

Boğaziçi Journal of Economics and Administrative Sciences

DOI

https://doi.org/10.21773/boun.25.1.3

Collections

Department of Business Administration, Article

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Citation Formats

T. Çağdaş and Z. N. Güner, “An Investigation of Returns to Insider Transactions Evidence from the Istanbul Stock Exchange,” Boğaziçi Journal of Economics and Administrative Sciences, pp. 57–77, 2011, Accessed: 00, 2020. [Online]. Available: https://hdl.handle.net/11511/39931.