Stock Market Manipulation and Corporate Venture Capital Investments

Seminar summary

The paper investigates the relationship between corporate venture capital (CVC) and stock market manipulation for NASDAQ and NYSE-listed companies. Compared to non-CVC firms, those with CVCs show 16% fewer manipulations on average. However, CVC investments in entrepreneurial firms are followed by a rise in market manipulation in the short run (around 6 months), but a decline thereafter. Stock manipulation harms the ability of CVCs to form investment syndicates and reduces the likelihood of successful IPO and acquisition exits. The hazard rate to IPO is 0.54 for CVC-backed firms that face market manipulation.

How to attend this seminar

This seminar is free to attend with no need to register in advance.

We welcome you to join us online on Wednesday 13 March 2024 at 2pm.

Speaker bio

Professor Douglas Cumming

Douglas Cumming, J.D., Ph.D., CFA, is the DeSantis Distinguished Professor of Finance and Entrepreneurship at the College of Business, Florida Atlantic University in Boca Raton, Florida. Douglas is a Visiting Professor of Finance at Birmingham Business School, University of Birmingham, UK, and at ESADE Business School, Spain.

Douglas has published over 230 articles in leading refereed academic journals (including 43 in Financial Times top 50 journals) in finance, management, and law and economics, such as the Academy of Management Journal, Economic Journal, Journal of Financial and Quantitative Analysis, Journal of Financial Economics, Review of Financial Studies, and Journal of International Business Studies.

Douglas has published 21 academic books with Oxford and Wiley, among others.

He is currently the Managing Editor in Chief of the Review of Corporate Finance. Previously he was the Managing Editor in Chief of the Journal of Corporate Finance and the British Journal of Management.

Douglas’ work has been reviewed in numerous media outlets, including The Economist, The New York Times, the Chicago Tribune, the Wall Street Journal, the Globe and Mail, Canadian Business, the National Post, and The New Yorker.

In November 2022, Douglas was listed by Clarivate as one of the top 92 most cited researchers in the world in the business and economics category. Douglas' work has been cited over 28,000 times according to Google Scholar.