The Impact of Manipulation in Internet Stock Message Boards
Internet message boards are often used to spread information in order to manipulate financial markets. Although this hypothesis is supported by many cases reported in the literature and in the media, the real impact of manipulation in online forums on financial markets remains an open question. This...
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| Format: | Article |
| Language: | English |
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Universiti Utara Malaysia
2011
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| Online Access: | https://repo.uum.edu.my/id/eprint/25029/1/IJBF%208%204%202011%201%2018.pdf |
| _version_ | 1803628852786757632 |
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| author | Delort, S Jean-Yves Arunasalam, Bavani Leung, Henry Milosavljevic, Maria |
| author_facet | Delort, S Jean-Yves Arunasalam, Bavani Leung, Henry Milosavljevic, Maria |
| author_sort | Delort, S Jean-Yves |
| collection | UUM |
| description | Internet message boards are often used to spread information in order to manipulate financial markets. Although this hypothesis is supported by many cases reported in the literature and in the media, the real impact of manipulation in online forums on financial markets remains an open question. This paper is on the effect of manipulation in internet stock message boards on financial markets by employing a unique corpus of moderated messages to investigate market manipulation.Internet message board administrators use the process of moderation to restrict market manipulation. We find that manual supervision of stock message boards by moderators does not effectively protect Internet users against manipulation. By focusing on messages that have been moderated as manipulative due to ramping, we show ramping is positively related to market returns, volatility and volume. Stocks with higher turnover, lower price level, lower market capitalization and higher volatility are more common targets of ramping. |
| first_indexed | 2024-07-04T06:28:33Z |
| format | Article |
| id | uum-25029 |
| institution | Universiti Utara Malaysia |
| language | English |
| last_indexed | 2024-07-04T06:28:33Z |
| publishDate | 2011 |
| publisher | Universiti Utara Malaysia |
| record_format | dspace |
| spelling | uum-250292018-10-25T00:39:51Z https://repo.uum.edu.my/id/eprint/25029/ The Impact of Manipulation in Internet Stock Message Boards Delort, S Jean-Yves Arunasalam, Bavani Leung, Henry Milosavljevic, Maria HG Finance Internet message boards are often used to spread information in order to manipulate financial markets. Although this hypothesis is supported by many cases reported in the literature and in the media, the real impact of manipulation in online forums on financial markets remains an open question. This paper is on the effect of manipulation in internet stock message boards on financial markets by employing a unique corpus of moderated messages to investigate market manipulation.Internet message board administrators use the process of moderation to restrict market manipulation. We find that manual supervision of stock message boards by moderators does not effectively protect Internet users against manipulation. By focusing on messages that have been moderated as manipulative due to ramping, we show ramping is positively related to market returns, volatility and volume. Stocks with higher turnover, lower price level, lower market capitalization and higher volatility are more common targets of ramping. Universiti Utara Malaysia 2011 Article PeerReviewed application/pdf en https://repo.uum.edu.my/id/eprint/25029/1/IJBF%208%204%202011%201%2018.pdf Delort, S Jean-Yves and Arunasalam, Bavani and Leung, Henry and Milosavljevic, Maria (2011) The Impact of Manipulation in Internet Stock Message Boards. The International Journal of Banking and Finance, 8 (4). pp. 1-18. ISSN 1617-722 http://ijbf.uum.edu.my/index.php/previous-issues/144-the-international-journal-of-banking-and-finance-ijbf-vol-8-no-4-dec-2011 |
| spellingShingle | HG Finance Delort, S Jean-Yves Arunasalam, Bavani Leung, Henry Milosavljevic, Maria The Impact of Manipulation in Internet Stock Message Boards |
| title | The Impact of Manipulation in Internet Stock Message Boards |
| title_full | The Impact of Manipulation in Internet Stock Message Boards |
| title_fullStr | The Impact of Manipulation in Internet Stock Message Boards |
| title_full_unstemmed | The Impact of Manipulation in Internet Stock Message Boards |
| title_short | The Impact of Manipulation in Internet Stock Message Boards |
| title_sort | impact of manipulation in internet stock message boards |
| topic | HG Finance |
| url | https://repo.uum.edu.my/id/eprint/25029/1/IJBF%208%204%202011%201%2018.pdf |
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