Broadcast: Events

Market Manipulation and Innovation

Tuesday 15 October 18:00 until 19:00
Conference Centre, Level 3 Bramber House, Refectory Road, University of Sussex
Speaker: Douglas Cumming, Professor of Finance and Entrepreneurship at Schulich School of Business, Canada
Part of the series: Asa Briggs Fellowship Lecture

The Sussex Lectures promote our excellent research and teaching, and provide opportunities for alumni, friends and our wider community to celebrate the work at the University.

Named after a 'founding father' of the University and its second Vice-Chancellor, the Asa Briggs fellowship scheme enables inward visits for internationally outstanding academic collaborations to work on specific projects with Sussex faculty. The scheme is designed to enable our researchers to engage in collaborative work with the best people in their field regardless of their institutional base.

Speaker: Douglas Cumming

Professor Douglas Cumming, Professor of Finance and Entrepreneurship at Schulich School of Business, York University, Canada, is collaborating with Professor Ranko Jelic (University of Business School) on the project Financial Markets Abuse in Europe. The project will focus on analysing the implications of the enforcement of insider trading regulation in Austria, Belgium, France, Germany, Italy, the Netherlands, Switzerland and the UK during the period 1st January 2006 to 31st December 2017. The results of the project should inform debate regarding whether London will remain the leading European financial market after Brexit.

Market Manipulation and Innovation

End-of-day price manipulation is associated with short-termism of the firm’s orientation, long-term harm to a firm’s equity values, and commensurate with reduced incentives for employees to innovate. Insider trading, by contrast, enables innovators to achieve exacerbated profits from innovation. Using a sample of suspected manipulation events based on intra-day data for all stocks from nine countries over eight years, we find evidence consistent with these real impacts of market manipulation on innovation. These findings are not attributable to “bad” firms innovating less and manipulating more, since the average firm subjected to manipulation in the sample is more innovative during the pre-manipulation period.

University of Sussex Conference Centre 
Conference Centre, Level 3 Bramber House, Refectory Road, University of Sussex 

This is a free, open lecture – everyone is welcome, but numbers are limited so please reserve your place.

Refreshments provided.


Posted on behalf of: University of Sussex
Last updated: Monday, 23 September 2019

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