A Sectorial Analysis of Possible Information leakages prior to Merger and Acquisition Deals in Istanbul Stock Exchange

Sıtkı SÖNMEZER

Abstract


This study aims to track insider trading activities prior to announcement of merger and acquisition deals in Istanbul Stock Exchange. 35 companies and 50 deals are examined for the period 2002 -2013 and significant average abnormal returns one months to twelve months prior to the dissemination of the related information are detected, indicating private information becoming public in some way. Abnormal price changes in M&A deals in Turkey may call for closer monitoring, stricter legislations and more cautious investors in the market. Significant returns are detected but no evidence regarding with sectorial differences are found in terms of information leakage.

Full Text:


References


Acharya, V. V., & Johnson, T. C. (2010). More insiders, more insider trading: Evidence from private-equity buyouts. Journal of Financial Economics, 98(3), 500-523.

Andrade, G., Mitchell, M., & Stafford, E. (2001). New Evidence and Perspectives on Mergers. The Journal of Economic Perspectives, 15(2), 103-120.

Augustin, P., Brenner, M. & Subrahmanyam, M. G. (2014). Informed Options Trading ahead of M&A Announcements: Insider Trading? Working Paper.

Chan, K., Ge, L., & Lin, T. C. (2012). Informational Content of Options Trading on Acquirer Announcement Return. Journal of Financial and Quantitative Analysis.

Chesney, M., Crameri, R., & Mancini, L. (2011). Detecting Informed Trading Activities in the Options Markets. NCCR FINRISK Working Paper No. 560.

Ge, L., Humphrey-Jenner, M., & Lin, T. C. (2014). Informed Options Trading Prior to Bankruptcy Filings. Working Paper.

Keown, A. J., & Pinkerton, J. M. (1981). Merger Announcements and Insider Trading Activity: An Empirical Investigation. The Journal of Finance, 36(4), 855-869.

Knewtson H. S. & Nofsinger J. R. (2014). Why are CFO Insider Trades More Informative? Managerial Finance, 40(2), 157-175.

Lehtman J., & White. W. (2013). US insider trading enforcement goes global. Journal of Investment Compliance, 14(3), 4-10.

Tanyeri, B., & Hekimoğlu, M. H. (2011). Türk Şirket Birleşmelerinin Satın Alınan Şirketlerin Hisse Senedi Fiyatları Üzerine Etkileri. Bilkent Üniversitesi. Ankara, Türkiye

Yörük, N., & Ban, Ü. (2006). Şirket Birleşmelerinin Hisse Senedi Fiyatlarına Etkisi: İMKB'de İşlem Gören Gıda Sektörü Şirketlerinde Birleşme Etkisinin Analizi. Muhasebe Finansman Dergisi, 88-101.




DOI: http://dx.doi.org/10.1453/jepe.v1i2.63

Refbacks

  • There are currently no refbacks.




.......................................................................................................................................................................................................................................................................................................................................

Journal of Economics and Political Economy - J. Econ. Pol. Econ. - JEPE - www.kspjournals.org

ISSN: 2148-8347

Editor: jepe@ksplibrary.org   Secretarial: secretarial@ksplibrary.org   Istanbul - Turkey.

Copyright © KSP Library