JOURNAL ARTICLE

Does Regulatory Attention Towards Trading Manipulation Curb Stock Price Volatility?

  • Published In: Accounting & Finance, 2025, v. 65, n. 3. P. 2626 1 of 3

  • Database: Business Source Ultimate 2 of 3

  • Authored By: Wang, Yuxin; Luo, Yilin; Ni, Chenkai; Hong, Jianqiao 3 of 3

Abstract

We examine whether regulatory attention towards trading manipulation curbs stock price volatility. Exploiting a unique setting in China in which the regulators announced investigations into trading manipulations of selected newly listed firms, we find a significant postinvestigation decline in the price volatility of all newly listed firms. The volatility reduction is stronger for stocks that are more subject to manipulations, that is, stocks with higher uncertainty, lower analyst attention and lower media attention. Furthermore, newly listed firms also experience a reduction in online discussions and trading volume of individual investors who are plausible counterparties of manipulators. [ABSTRACT FROM AUTHOR]

Additional Information

  • Source:Accounting & Finance. 2025/09, Vol. 65, Issue 3, p2626
  • Document Type:Article
  • Subject Area:Business and Management
  • Publication Date:2025
  • ISSN:0810-5391
  • DOI:10.1111/acfi.70009
  • Accession Number:188065534
  • Copyright Statement:Copyright of Accounting & Finance is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites without the copyright holder's express written permission. Additionally, content may not be used with any artificial intelligence tools or machine learning technologies. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Looking to go deeper into this topic? Look for more articles on EBSCOhost.