Using the unique implementation of a short selling ban on the financial stocks of Belgium, France and Italy, I find that short selling restrictions have contrasting effects on resiliency and commonality in liquidity. Short selling bans contribute to lowering the risk of financial contagion by...

Based on M&As from over 45 countries from 2003-2014, we show that the presence of end-of-day (EOD) target price manipulation prior to M&As increases the probability of an M&A deal withdrawal, and decreases the premium paid. More detailed exchange trading rules that govern manipulation across...

This paper is the first comprehensive analysis of economic sanctions and measures the effect of imposing and lifting sanctions on the target country's exchange-listed, publicly traded firms and examines how the impact of sanctions on deep state-owned firms differs from their impact on other...

This paper argues that the globalization of stock markets -- manifested inter alia by listing and trading on foreign stock exchanges -- also entails legal interdependence, particularly in what concerns securities regulation and corporate governance regimes. When securities transactions are...

On 12 March 1994, SEBI imposed new norms on trading on the Bombay Stock Exchange, and the effective consequence of this has been an elimination of badla, a form of forward trading. Without badla, the role of speculative traders on the BSE is diminished. This paper sets out to measure the impact...

The purpose of this paper is to explore differences among countries in perceptions of the fairness of trading in financial markets and offer these perceptions as measures of social capital in financial markets. What are the differences in the perceptions of insider trading among different...

Ethics, fairness, trust and freedom from corruption are all parts of social capital and social capital matters in financial markets because investors consider not only their tradeoff between risk and return based on available information but also their trust in the accuracy of information and...

An important group of traders in the foreign exchange market are governments who often adhere to a foreign exchange rate policy of occasional interventions with otherwise floating rates. In this paper, we provide a theoretical model and empirical evidence that government foreign exchange...

Macroeconomic factors play a pivotal role in attracting foreign investment in the country. This study investigates the relationship between macroeconomic factors and foreign portfolio investment volatility in South Asian countries. The monthly data is collected for the period ranging from 2000...

Corporate transparency reduces information asymmetries between firms and capital markets, but increases the costs associated with information leakage to competitors. We explore how a country's information environment affects innovation, an activity characterized by high information asymmetries...