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Do hedge funds still manipulate stock prices?

Research output: Contribution to Journal/Magazine › Journal article › peer-review

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Do hedge funds still manipulate stock prices? / Cui, Xinyu; Kolokolova, Olga.
In: Journal of Corporate Finance, Vol. 92, 102765, 30.06.2025.

Research output: Contribution to Journal/Magazine › Journal article › peer-review

Harvard

Cui, X & Kolokolova, O 2025, 'Do hedge funds still manipulate stock prices?', Journal of Corporate Finance, vol. 92, 102765. https://doi.org/10.1016/j.jcorpfin.2025.102765

APA

Cui, X., & Kolokolova, O. (2025). Do hedge funds still manipulate stock prices? Journal of Corporate Finance, 92, Article 102765. Advance online publication. https://doi.org/10.1016/j.jcorpfin.2025.102765

Vancouver

Cui X, Kolokolova O. Do hedge funds still manipulate stock prices? Journal of Corporate Finance. 2025 Jun 30;92:102765. Epub 2025 Mar 14. doi: 10.1016/j.jcorpfin.2025.102765

Author

Cui, Xinyu ; Kolokolova, Olga. / Do hedge funds still manipulate stock prices?. In: Journal of Corporate Finance. 2025 ; Vol. 92.

Bibtex

@article{e185e3cc46a9493480069c6d382e3a1c,
title = "Do hedge funds still manipulate stock prices?",
abstract = "We find no evidence of stock price manipulation by hedge funds from 2011 to 2019, despite confirming the portfolio-pumping pattern documented between 2000 and 2010. In the more recent period, the magnitude, frequency, and persistence of manipulation by hedge funds appear to have declined. This decrease is linked to reduced rewards, as fund flows no longer react positively to the end-of-quarter returns of hedge fund portfolios. Proactive regulatory actions, measured by SEC litigation cases involving hedge funds, and increased press attention to hedgefund fraud also contribute to reduced manipulation during both periods.",
author = "Xinyu Cui and Olga Kolokolova",
year = "2025",
month = mar,
day = "14",
doi = "10.1016/j.jcorpfin.2025.102765",
language = "English",
volume = "92",
journal = "Journal of Corporate Finance",
issn = "0929-1199",
publisher = "Elsevier",

}

RIS

TY - JOUR

T1 - Do hedge funds still manipulate stock prices?

AU - Cui, Xinyu

AU - Kolokolova, Olga

PY - 2025/3/14

Y1 - 2025/3/14

N2 - We find no evidence of stock price manipulation by hedge funds from 2011 to 2019, despite confirming the portfolio-pumping pattern documented between 2000 and 2010. In the more recent period, the magnitude, frequency, and persistence of manipulation by hedge funds appear to have declined. This decrease is linked to reduced rewards, as fund flows no longer react positively to the end-of-quarter returns of hedge fund portfolios. Proactive regulatory actions, measured by SEC litigation cases involving hedge funds, and increased press attention to hedgefund fraud also contribute to reduced manipulation during both periods.

AB - We find no evidence of stock price manipulation by hedge funds from 2011 to 2019, despite confirming the portfolio-pumping pattern documented between 2000 and 2010. In the more recent period, the magnitude, frequency, and persistence of manipulation by hedge funds appear to have declined. This decrease is linked to reduced rewards, as fund flows no longer react positively to the end-of-quarter returns of hedge fund portfolios. Proactive regulatory actions, measured by SEC litigation cases involving hedge funds, and increased press attention to hedgefund fraud also contribute to reduced manipulation during both periods.

U2 - 10.1016/j.jcorpfin.2025.102765

DO - 10.1016/j.jcorpfin.2025.102765

M3 - Journal article

VL - 92

JO - Journal of Corporate Finance

JF - Journal of Corporate Finance

SN - 0929-1199

M1 - 102765

ER -