Researchers from Bournemouth University Publish New Studies and Findings in the Area of Economic Structures (The impact of stock market manipulation on Nigeria’s economic performance)

2020 SEP 11 (NewsRx) — By a News Reporter-Staff News Editor at Economics Daily Report — A new study on is now available. According to news originating from Bournemouth University by NewsRx editors, the research stated, “This study is the first attempt to empirically analyse stock market manipulation on the Nigerian Stock Exchange and its consequences on economic performance.”

The news editors obtained a quote from the research from Bournemouth University: “The empirical investigation employs a broad data set of 186 actual manipulation cases indicted by the Nigerian Security and Exchange Commission between 2002 and 2016. We embrace market microstructure analysis and the event study method to understand how various manipulation techniques impact on market measures, and the Error Correction Model to evaluate their economic effects. Manipulation is found to distort market efficiency measures (such as market capitalization, value traded ratio and All-Share Index) and genuine traders are forced to exit the market to avoid possible trading with a manipulator. Such huge divestment and the subsequent financial risk weaken the ability of the Stock Exchange market to improve economic performance, creating negative consequences at the post-manipulation period. Essentially, economic variables (such as the GDP) react negatively to manipulative trading.”

According to the news editors, the research concluded: “This finding is insightful and a prompt to the Securities and Exchange Commission to design policy responses towards deterring and prosecuting unfair trading practices or other activities that contravene the market rules.”

For more information on this research see: The impact of stock market manipulation on Nigeria’s economic performance. Journal of Economic Structures, 2020,9(1):1-28. (Journal of Economic Structures – http://www.journalofeconomicstructures.com/). The publisher for Journal of Economic Structures is SpringerOpen.

A free version of this journal article is available at https://doi.org/10.1186/s40008-020-00226-0.

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Our news journalists report that additional information may be obtained by contacting Babatunde Akinmade, Department of Accounting, Economics and Finance, Bournemouth University. Additional authors for this research include Festus Fatai Adedoyin, Festus Victor Bekun.

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