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The market impact of private information before corporate Announcements: Evidence from Turkey

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  • Aziz Simsir, Serif
  • Simsek, Koray D.

Abstract

Before their announcements are publicized on the regulatory agency’s Public Disclosure Platform (PDP) website, Turkish public firms privately upload their disclosures to the PDP servers with electronic signatures. Using the electronic signature timestamps of the announcements made between 2009 and 2017, we find significant abnormal trading activity in announcer firm stocks immediately after the appearance of these private uploads on the PDP servers. Abnormal volume after privately signed uploads is most significant when the subsequent market reaction to the announcements is positive. These findings withstand various robustness tests and are strongest for firms with weak governance practices.

Suggested Citation

  • Aziz Simsir, Serif & Simsek, Koray D., 2022. "The market impact of private information before corporate Announcements: Evidence from Turkey," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 80(C).
    • Handle: RePEc:eee:intfin:v:80:y:2022:i:c:s1042443122001007
    DOI: 10.1016/j.intfin.2022.101624
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    More about this item

    Keywords

    Insider trading; Information leakage; Public announcements; Event study; Disclosure; Trading volume;
    All these keywords.

    JEL classification:

    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • G18 - Financial Economics - - General Financial Markets - - - Government Policy and Regulation
    • M40 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - General

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