Stock price manipulation: Prevalence and determinants
AuthorComerton-Forde, CA; Putnins, TJ
Source TitleReview of Finance
PublisherOxford University Press
University of Melbourne Author/sComerton-Forde, Carole
Document TypeJournal Article
CitationsComerton-Forde, C. A. & Putnins, T. J. (2014). Stock price manipulation: Prevalence and determinants. Review of Finance, 18 (1), pp.23-66. https://doi.org/10.1093/rof/rfs040.
Access StatusAccess this item via the Open Access location
Open Access URLhttp://papers.ssrn.com/sol3/papers.cfm?abstract_id=1243042
We empirically analyze the prevalence and economic underpinnings of closing price manipulation and its detection. We estimate that ∼1% of closing prices are manipulated, of which only a small fraction is detected and prosecuted. We find that stocks with high levels of information asymmetry and mid to low levels of liquidity are most likely to be manipulated. A significant proportion of manipulation occurs on month/quarter-end days. Manipulation on these days is more likely in stocks with high levels of institutional ownership. Government regulatory budget has a strong effect on both manipulation and detection.
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