Aim: The article aims at developing an economic theory of reorientation. As Western subjects are disoriented by long-time systematic commercial manipulation of their preferences, the theory focuses on new concepts of endogenous preferences and on the process of preference manipulation and its...

The key assumption in regression discontinuity analysis is that the distribution of potential outcomes varies smoothly with the running variable around the cutoff. In many empirical contexts, however, this assumption is not credible; and the running variable is said to be manipulated in this...

Financial benchmarks estimate market values or reference rates used in a wide variety of contexts, but are often calculated from data generated by parties who have incentives to manipulate these benchmarks. Since the London Interbank Offered Rate (LIBOR) scandal in 2011, market participants,...

This paper analyzes the implications of those types of interventions that affect misreporting costs. I study a model of communication between an uninformed voter and a media outlet that knows the quality of two competing candidates. The alternatives available to the voter are endogenously...

R&D manipulation prevails in firms' application for high-tech enterprise certification. This paper provides evidence on how media coverage significantly inhibits firms' R&D manipulation behaviour by increasing citizens' concerns. Among all the media reports, original reports and in-depth reports...

An economic elite wants to buy a public asset as cheaply as possible. Its ownership is decided by an incumbent politician who can be of high or low competence. The elite can make a buying offer for the asset and manipulate the information that is available to voters about the incumbent’s...

We examine article, author and firm characteristics of investment articles published by non-professional analysts on the social media investment platform Seeking Alpha from 2006 to 2020 leading to visible market value changes. We show that there are differences between articles followed by stock...

We propose that market manipulation, which brings about both managerial short-termism and an opaque environment, has a negative causal impact on the four dimensions of corporate culture: compete, control, create, and collaborate. We test this proposition by matching corporate culture dimensions...

The phenomenon of creative accounting has attracted the attention of researchers for decades, especially in the financial sector for its implications on the quality of financial reporting. Although several procedures have been developed by researchers and practitioners to determine any...

We consider a Bayesian persuasion problem where a sender's utility depends only on the expected state. We show that upper censorship that pools the states above a cutoff and reveals the states below the cutoff is optimal for all prior distributions of the state if and only if the sender's...

Pathak and Sönmez (2013) provided support for many real-world school choice reforms by showing that the post-reform mechanisms are often “less manipulable” than the pre-reform mechanisms according to their criterion of manipulability. In many realistic preference domains including...

Two activists with correlated private positions in a firm's stock, trade sequentially before simultaneously exerting effort that determines the firm's value. We document the existence of a novel linear equilibrium in which an activist's trades have positive sensitivity to her block size, but...

Financial transparency is essential for stakeholders to make decisions, ensuring a correct amount of tax is paid to the state. Many companies have opted for the recognition of deferred tax assets to present a different result, but there is scant literature. This study investigates the impact of...

Fraudulent actions of a trader or a group of traders can cause substantial disturbance to the market, both directly influencing the price of an asset or indirectly by misinforming other market participants. Such behavior can be a source of systemic risk and increasing distrust for the market...

A model is developed for two players exerting media manipulation efforts to support each of two actors who interact controversially. Early evidence may support one actor, while the full evidence emerging later may support the other actor. Exerting effort when the full evidence exceeds (falls...

We introduce a democratic procedure with voting-based proposals called "Pendular Voting". It works as follows: An agenda-setter chooses a proposal meant to replace a given status quo. In the first stage, a random sample of the population votes on the proposal. The result is made public, which...

Manipulation in the VIX settlement can cause significant losses to investors. Analysing high-frequency data, we present indications of VIX manipulation accelerating since 2017. Deviations have an upward direction and average at around 6%. Specific effects accompany settlement days. The put/call...

Should there be a right not to be manipulated? What kind of right? On Kantian grounds, manipulation, lies, and paternalistic coercion are moral wrongs, and for similar reasons; they deprive people of agency, insult their dignity, and fail to respect personal autonomy. On welfarist grounds,...

Information is a powerful tool used in any society and by any nation to create excepted perception of reality. Russian information operations have always been a very interesting example of using various media to manipulate international and domestic opinion in support of national (government)...

We consider whether traders are more likely to commit securities violations when trading at home, a new form of working induced by the Covid pandemic. We examine data pre- and post-Covid, during which some traders were unexpectedly forced to work at home. The data indicate the presence of both a...

We exploit a quasi-natural experiment that emerged during the Czech presidential run-off election to identify the impact of inaccurate and misleading information on electoral outcomes. A political campaign associated a vote for one of the candidates with a legally and politically unfounded risk...

Background: Since external auditors possess the expertise necessary for detecting manipulations in financial statements, they should also take into account earnings management that could lead to it. In that context, auditor's independence, which can be affected by auditor's rotation, is of...