The Review of Finance and Banking

47-67

Authors: Marija Corluka, Edwin O. Fischer

On 19th March 2009, national newspapers in Austria reported on a “turbo scandal” that had been suspected on the Vienna Stock Exchange. Concerned investors argued that the issuers of turbo certificates tried to raid the underlying prices of these down-and-out call options by pushing down the prices of the underlings below the barriers of the derivatives. The goal of this research is to find out which variables are crucial for the research, which stocks were manipulated and who their manipulators were. According to our empirical results, we define suspicious issuers for each stock and classify them as being highly, moderately, less suspicious or rather unsuspicious issuers.

81-96

Authors: Bogdan Murarasu, Alina Bobasu

This paper studies the impact of international trade and foreign direct investments on economic growth in Central and East European countries using static and dynamic panel data estimation methods. The results mostly point towards a positive effect of trade and financial openness on economic growth, although the magnitude of the impact depends of the econometric method used. The paper also assesses the impact of trade and financial linkages on output comovements between regions. The measured influence of trade linkages is more reduced compared with the impact of financial linkages, especially during crisis periods. The empirical analysis identifies a significant negative effect of financial integration on output synchronization, conditional on global shocks. The impact of financial linkages on output synchronization during crises is changing compared to normal economic situations. During normal times, increased financial linkages generate higher output divergence since capital is flowing to the regions where it is most productive. In contrast, during the crisis period, regions which know a high degree of integration, especially through the banking system experienced a significant increase in their economic growth comovement. In order to safeguard the benefits of financial integration while reducing the negative effects stemming from financial crisis is of the utmost importance to implement better prudential oversight and policy coordination.

7-14

Authors: Yogesh Chauhan, Chakrapani Chaturvedula, Viswanathan Iyer

The paper reviews the existing studies on insider trading, market efficiency, and regulation. We suggest that insider trading information is useful to escalate the price discovery. However, most of studies on insider trading are concentrated on developed markets. Hence, the paper identifies areas where research is needed. We show that insider trading issue should be evaluated on emerging markets so that proper regulation on insider trading can be framed.

29-40

Authors: Elena Valentina Tilica

This paper studies the month-of-the-year (MOY) effect between 2004 and 2014, also considering the impact of the 2008 crisis. MOYis present in most East European countries, but the patterns changebetween countries and, also, as a result of the crisis.Thus, markets should be analyzed separately and periodically, especially after important events, as their behavior changes. It appears that some markets try to correct the observed pattern in the same year, by creatingan inverse one. This creates another opportunity for informed investors to create profitable strategies, a sign that the level of efficiency on the markets is low.