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Forensic Finance: Market Abuse and Price Manipulation in Security Markets on the Trail

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  • Marija Corluka
  • Edwin O. Fischer

Abstract

On 19th March 2009, national newspapers in Austria reported on a “turbo scandal” that had been suspected on the Vienna Stock Exchange. Concerned investors argued that the issuers of turbo certificates tried to raid the underlying prices of these down-and-out call options by pushing down the prices of the underlings below the barriers of the derivatives. The goal of this research is to find out which variables are crucial for the research, which stocks were manipulated and who their manipulators were. According to our empirical results, we define suspicious issuers for each stock and classify them as being highly, moderately, less suspicious or rather unsuspicious issuers.

Suggested Citation

  • Marija Corluka & Edwin O. Fischer, 2014. "Forensic Finance: Market Abuse and Price Manipulation in Security Markets on the Trail," The Review of Finance and Banking, Academia de Studii Economice din Bucuresti, Romania / Facultatea de Finante, Asigurari, Banci si Burse de Valori / Catedra de Finante, vol. 6(2), pages 047-067, December.
    • Handle: RePEc:rfb:journl:v:06:y:2014:i:2:p:047-067
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