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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
Article Number: | Pages: | | DOI:
Received: June 23, 2017 Accepted: August 8, 2017 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
Keywords: Manipulation, intermediary institutions, investment, stock market, stock trading.