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Do pre-market notifications and stock volatility trigger circuit breakers? Evidence from Turkish post-IPO stocks

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  • Kaya, Orçun
  • Çatak, Çiydem

Abstract

Understanding how the arrival of pre-market information triggers intraday circuit breakers in post-IPO stocks is central to analyzing market behavior in emerging markets, where information asymmetry and heightened volatility are common. Using data on newly listed stocks from the Turkish stock exchange, this paper examines the drivers of circuit breaker activations in the first year following IPOs. We find that pre-market notifications significantly increase the likelihood of a trading halt, with the magnitude of this effect being moderated by stock-level volatility. Our findings have important policy implications for assessing how pre-market disclosures interact with volatility thresholds to prevent unintended trading halts in fragile market environments.

Suggested Citation

  • Kaya, Orçun & Çatak, Çiydem, 2025. "Do pre-market notifications and stock volatility trigger circuit breakers? Evidence from Turkish post-IPO stocks," Finance Research Letters, Elsevier, vol. 81(C).
    • Handle: RePEc:eee:finlet:v:81:y:2025:i:c:s1544612325007688
    DOI: 10.1016/j.frl.2025.107509
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
    • C58 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Financial Econometrics

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