An Investigation of Returns to Insider Transactions: Evidence from the Istanbul Stock Exchange
21 Pages Posted: 9 Jan 2011 Last revised: 14 Oct 2011
Date Written: August 20, 2010
Abstract
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.
Keywords: Insider Trading, Emerging Market, Istanbul Stock Exchange, ISE, Market Efficiency
JEL Classification: G14
Suggested Citation: Suggested Citation
Do you have a job opening that you would like to promote on SSRN?
Recommended Papers
-
The Profits to Insider Trading: a Performance-Evaluation Perspective
By Leslie A. Jeng, Richard J. Zeckhauser, ...
-
Estimating the Returns to Insider Trading: A Performance-Evaluation Perspective
By Leslie A. Jeng, Richard J. Zeckhauser, ...
-
Overreaction and Insider Trading: Evidence from Growth and Value Portfolios
By Michael S. Rozeff and Mir A. Zaman
-
What Insiders Know About Future Earnings and How They Use it: Evidence from Insider Trades
By Bin Ke, Steven J. Huddart, ...
-
Market Efficiency and Insider Trading: New Evidence
By Michael S. Rozeff and Mir A. Zaman
-
The Conditional Performance of Insider Trades
By B. Espen Eckbo and David C. Smith
-
Are Insiders' Trades Informative?
By Josef Lakonishok and Inmoo Lee
-
Performance Evaluation with Transactions Data: the Stock Selection of Investment Newsletters
-
Insider Trading, News Releases and Ownership Concentration
By Jana P. Fidrmuc, Marc Goergen, ...
-
Public Disclosure and Dissimulation of Insider Trades
By Steven J. Huddart, John S. Hughes, ...