TY - JOUR
T1 - Price manipulation by intermediaries
AU - Imişiker, Serkan
AU - Özcan, Rasim
AU - Taş, Bedri Kamil Onur
N1 - Publisher Copyright:
Copyright © Taylor & Francis Group, LLC.
PY - 2015/1/1
Y1 - 2015/1/1
N2 - In this study, we investigate two main research questions using unique individual trade level data from the Istanbul Stock Exchange (ISE; renamed Borsa Istanbul in January 2013): (1) Do brokers conduct manipulative trades in the ISE? (2) Do these brokers gain returns from their manipulative behavior? We examine the trade-based "pump-and-dump" price manipulation scheme. Using the complete intraday trading history of stocks listed on the ISE over the 2003-6 period, we find that a significant percent of the trades conducted by brokers can be identified as consistent with the pump-and-dump price manipulation scheme, and brokers that conduct more pump-and-dump trades earn marginally higher profits.
AB - In this study, we investigate two main research questions using unique individual trade level data from the Istanbul Stock Exchange (ISE; renamed Borsa Istanbul in January 2013): (1) Do brokers conduct manipulative trades in the ISE? (2) Do these brokers gain returns from their manipulative behavior? We examine the trade-based "pump-and-dump" price manipulation scheme. Using the complete intraday trading history of stocks listed on the ISE over the 2003-6 period, we find that a significant percent of the trades conducted by brokers can be identified as consistent with the pump-and-dump price manipulation scheme, and brokers that conduct more pump-and-dump trades earn marginally higher profits.
KW - Broker behavior
KW - Market structure
KW - Trade-based manipulation
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U2 - 10.1080/1540496X.2015.1046349
DO - 10.1080/1540496X.2015.1046349
M3 - Article
AN - SCOPUS:84943398959
SN - 1540-496X
VL - 51
SP - 788
EP - 797
JO - Emerging Markets Finance and Trade
JF - Emerging Markets Finance and Trade
IS - 4
ER -