Market Manipulation and ESG Incidents

Event details

This event will discuss how market manipulation affects trading activity and corporate policies. It also explores the consequences of market manipulation for firms’ ESG policies. 

Abstract

Market manipulation are deliberate actions that affect trading activity and corporate policies. We conjecture that market manipulation has unintended consequences also for the ESG policies of the firm. Based on an international sample of monthly data from 2007 to 2018, the data indicate that the presence of market manipulation in a stock increases the probability of ESG incidents by the firm in the ensuing year. We present evidence that this effect is driven by the three channels: financial frictions, business risk, and employment changes. The findings are robust to numerous checks and different fixed effects structure. We also mitigate the endogeneity concerns by using a quasi-natural experiment of MiFID introduction in difference-in-difference research design. 

Biography

Professor Douglas Cumming, J.D., Ph.D., CFA, is the DeSantis Distinguished Professor of Finance and Entrepreneurship at the College of Business, Florida Atlantic University in Boca Raton, Florida. Douglas is also a Visiting Professor of Finance at Birmingham Business School, University of Birmingham, UK. Previously, Douglas was a Professor and the Ontario Research Chair at the Schulich School of Business, York University, in Toronto, Canada from 2007-2018. He has held prior visiting appointments at Essex Business School, Kobe University, EMLyon, RMIT, and University of Bergamo, among others.

Douglas has published over 200 articles in leading refereed academic journals (including 40 in Financial Times top 50 journals) in finance, management, and law and economics, such as the Academy of Management Journal, Economic Journal, Journal of Business, Journal of Financial and Quantitative Analysis, Journal of Financial Economics, Review of Financial Studies, Journal of International Business Studies, and the Journal of Empirical Legal Studies. 

In November 2022, Douglas was listed by Clarivate as one of the top 92 most cited researchers in the world in the business and economics category.  Douglas' work has been cited over 24,000 times according to Google Scholar. 

Douglas is the Managing Editor-in-Chief of the Review of Corporate Finance (2021-current).  He is a Co-Editor-in-Chief of the Journal of Industrial and Business Economics (2021-current).  He is a former Managing Editor-in-Chief of the British Journal of Management (January 2020 - December 2022) and the Journal of Corporate Finance (January 2018 – December 2020). He is an Editor of Corporate Governance: An International Review (January 2015 - current). He is the Founding Editor of Annals of Corporate Governance (January 2016 – January 2020) and a former Co-Editor of Finance Research Letters and Entrepreneurship Theory and Practice. He is currently serving as an Associate Editor for Economic Modelling, European Journal of Finance, Journal of Banking and Finance, Studies in Economics and Finance, and an Editorial Board member of numerous academic journals.

Douglas has published 21 academic books. He is the coauthor of Venture Capital and Private Equity Contracting (Elsevier Academic Press, 2nd Edition, 2013), and Hedge Fund Structure, Regulation and Performance around the World (Oxford University Press, 2013), and Crowdfunding: Fundamental Cases, Facts, and Insights (Elsevier Academic Press, 2019). He is the Editor of the Oxford Handbook of Entrepreneurial Finance (Oxford University Press, 2013), the Oxford Handbook of Private Equity (Oxford University Press, 2013), the Oxford Handbook of Venture Capital (Oxford University Press, 2013), the Oxford Handbook of Sovereign Wealth Funds (Oxford University Press, 2017), the Oxford Handbook of IPOs (Oxford University Press, 2018), and the Oxford Handbook of Hedge Funds (Oxford University Press, 2021 forthcoming), among others.

Douglas is a regular speaker at academic and industry conferences around the world. He has given recent keynote speeches at the ISAFE Conference in Saigon, British Academy of Management Corporate Governance Conference, Entrepreneurial Finance Association, European Financial Management Association, Financial Research Network Corporate Finance Conference, French Finance Association, Infiniti Conference on International Finance, Vietnam Symposium in Banking and Finance, the Budapest Liquidity and Financial Markets Conference, and the Humboldt University of Berlin Fintech Conference, among others.

Douglas’ work has been reviewed in numerous media outlets, including The Economist, The New York Times, the Chicago Tribune, the Wall Street Journal, the Globe and Mail, Canadian Business, the National Post, and The New Yorker.

Back to events