All Issues
Current Issue

.Reprint (PDF) (803 KB)

Search Pubmed for articles by:

MM Doğanay
R Aktaş
K Somuncu

Search Google Scholar for articles by:

MM Doğanay
R Aktaş
K Somuncu

Issues in Business Management and Economics
Vol.5 (5), pp. 70-80 September, 2017
ISSN 2350-157X
Available online at https://www.journalissues.org/IBME/
DOI:https://doi.org/10.15739/IBME.17.008
Article ID/BM/17/019/011 pages
Author(s) retain the copyright of this article. Author(s) agree that this article remain permanently open access under the terms of the Creative Commons Attribution License 4.0 International License.



Original Research Article

The intermediary institutions which are preferred for manipulative trading: Evidence from an emerging market

M. Mete Doğanay*1, Ramazan Aktaş2 and Kartal Somuncu3

1Department of Business Administration, Çankaya University, Eskisehir Yolu 29. Km. Ankara 06790, Turkey.
2Department of Business Administration, TOBB University of Economics and Technology, Söğütözü Caddesi No: 43, Ankara 06560, Turkey.
3Department of Business Administration, Afyon Kocatepe University, ANS Kampüsü, Afyon 03200, Turkey.

*Corresponding Author E-mail: mdoganay(at)cankaya.edu.tr

Tel: +90 312 233 1258



date Received: June 23, 2017     date Accepted: August 8, 2017     date Published: September 14, 2017


 Abstract

This research investigates the type of intermediary institutions chosen by the manipulators for their manipulative trading. Univariate and multivariate analyses are performed and three variables having significant effect on the manipulators’ choice of intermediary institution for their manipulative trading are found. These variables are being publicly traded, size in terms of total assets, and gross profit margin. Being publicly traded and size are positively; gross profit margin is negatively related to the manipulators’ choice of intermediary institution for their manipulative trading. Managers of the intermediary institutions and regulators should be aware of these results and regulators should scrutinize high volume transactions conducted through this type of intermediary institutions more closely.

 

JEL Classification: G14, G15, G18, G24


Key words: Manipulation, intermediary institutions, investment, stock market, stock trading.


Doganay et al