2019
Glaser, F. (2019)
Decentralized Digital Platforms
Category: Dissertation thesis
Reference No.: 2019-223
Clapham, B. (2019)
Integrity and Efficiency of Electronic Securities Markets: Fraud Detection, Safeguards, and the Role of High-Frequency Trading
Category: Dissertation thesis
Reference No.: 2019-222
Siering, M.; Janze, C. (2019)
Information Processing on Online Review Platforms
In: Journal of Management Information Systems (forthcoming)
Category: Publications in scientific journals
Reference No.: 2019-218
Clapham, B.; Siering, M.; Gomber, P. (2019)
Popular News Are Relevant News! How Investor Attention Affects Algorithmic Decision-Making and Decision Support in Financial Markets
In: Information Systems Frontiers (forthcoming)
Category: Publications in scientific journals [Find it]
AbstractAlgorithmic decision-making plays an important role in financial markets. Current tools in trading focus on popular companies which are discussed in thousands of news items. However, it remains unclear whether methodologies from the field of data analytics relying on large samples can also be applied to small datasets of less popular companies or whether these methodologies lead to the discovery of meaningless patterns resulting in economic losses. We analyze whether the impact of media sentiment on financial markets is influenced by two levels of investor attention and whether this impacts algorithmic decision-making. We find that the influence differs substantially between news and companies with high and low investor attention. We apply a trading simulation to outline the practical consequences of these interrelations for decision support systems. Our results are of high importance for financial market participants, especially for algorithmic traders that consider sentiment for investment decision support.
Reference No.: 2019-217
Koch, J.; Siering, M. (2019)
The Recipe of Successful Crowdfunding Campaigns: An Analysis of Crowdfunding Success Factors and Their Interrelations
In: Electronic Markets, Vol. 29, No. 4, pp. 661-679
Category: Publications in scientific journals [Find it]
AbstractOnline crowdfunding websites are multi-sided platforms that offer project founders the possibility to publish their project ideas, to address potential investors, and to ask for funding. The successful funding of crowdfunding campaigns is important for founders, investors, platform operators, and diverse interest groups as well. As a consequence, research has already shed light on some success factors of crowdfunding campaigns, but the interrelations between the success factors have been neglected so far. Building upon previous research in the field of crowdfunding, investment decision making, and signaling theory, we propose a research model to explain crowdfunding success considering success factors and their interrelations. Our findings reveal that not only the factors themselves but also their interrelations are important to explain funding success. Our results are highly relevant for the stakeholders on crowdfunding platforms in order to prepare and identify successful project proposals.
Reference No.: 2019-216
Koch, J. (2019)
Online Crowdfunding Platforms: Campaign Success, Cancellation, and Fraud
Category: Dissertation thesis
Reference No.: 2019-215
Koch, J.; Lausen, J.; Kohlhase, M. (2019)
Internalizing the Externalities of Overfunding on Crowdfunding Platforms
In: EFL Quarterly, 3/2019; Frankfurt am Main
Category: Miscellaneous [Find it]
Reference No.: 2019-212
Lausen, J. (2019)
Regulating Initial Coin Offerings? A Taxonomy of Crypto-Assets
In: Proceedings of the 27th European Conference on Information Systems (ECIS 2019); Stockholm-Uppsala, Sweden
Category: Proceedings [Find it]
AbstractIn 2017, the price of bitcoin skyrocketed and many investors wanted to participate in the crypto-hype.
Hence, a lot of companies took the new opportunity to obtain financing by issuing crypto-assets in initial
coin offerings instead of going the heavily regulated way through venture capital or initial public offerings.
Besides valuable projects, many projects fail or turn out to be a scam. Retail investors are not aware of
the potentially high risks of ICO investments. Regulators of most jurisdictions have not yet proposed new
rules, but monitor the new phenomenon to gain insights. Many regulators stick to regulation in place and
pursue case-by-case assessments in order to apply existing rules. This paper develops a taxonomy of
crypto-assets based on academic literature and empirical data. The taxonomy covers embodied investor
rights, security-like characteristics, and crypto-specific features being able to support regulators with
their case-by-case assessment. The taxonomy helps regulators to classify crypto-assets allowing them
to decide which characteristics are subject to regulation and whether new rules are necessary to ensure
market integrity and investor protection. Further, the taxonomy is also designed to support issuers with
the design of new crypto-assets helping them to understand which characteristics might be subject to regulation.
Reference No.: 2019-207
Siering, M. (2019)
The Economics of Stock Touting during Internet-Based Pump and Dump Campaigns
In: Information Systems Journal, Vol. 29, No. 2, pp. 456-483
Category: Publications in scientific journals [Find it]
AbstractInformation systems have facilitated the increase in relevance of financial markets. Nevertheless, the rise of the Internet has eased information-based financial market manipulations. In this study, we examine the phenomenon of stock touting during pump and dump campaigns, in which deceivers advertise stocks to profit from an increased price level. We observe that the positive prospects promised are not confirmed by corporate disclosures and financial news. Furthermore, manipulators select targeted financial instruments based on specific stock and company characteristics. Manipulators avoid signals of anomaly and prefer unknown stocks. We find that stock touting has a positive market impact but that it is followed by a large decline in stock price in the subsequent days, causing investors to lose substantial amounts of their investments. We consider the impact of information generation, information content and information presentation on the corresponding market reaction. Interestingly, information generation influences the demand for the stock, but information content and information presentation drive the willingness to pay. Our results are highly relevant for Internet users, software vendors and market surveillance authorities, as a deep understanding of such information-based manipulations is necessary to develop appropriate countermeasures.
Reference No.: 2019-203
Gomber, P.; Clapham, B.; Lausen, J.; Panz, S. (2019)
The MiFIR Trading Obligation: Impact on Trading Volume and Liquidity in Electronic Trading
In: Lecture Notes in Business Information Processing (LNBIP), Vol. 345, pp. 3-26, Eds.: N. Mehandjiev and B. Saadouni; Springer, Cham
Category: Proceedings [Find it]
AbstractThe new financial market regulation MiFID II / MiFIR will fundamentally change the trading and market infrastructure landscape in Europe. One key aspect is the trading obligation for shares that intends to restrict over-the-counter (OTC) trading to ensure that more trading takes place on regulated trading venues and on platforms of Systematic Internalisers (SIs). In this context, market observers often argue that SIs might have a competitive advantage due to the best execution concept in combination with the possible exemption of SIs from the tick size regime. Applying scenario analysis, we determine the likely migration of OTC trading volume to regulated trading venues and SIs. Based on our data set, covering intraday data including OTC trades as well as order book snapshots of EURO STOXX 50 constituents on major European venues, we investigate how changes in trading volume influence liquidity on lit markets. The results of our scenario analysis indicate that liquidity on lit markets might increase due to additional turnover formerly traded OTC. However, also a negative liquidity effect for lit markets and for the price discovery process is possible because of increased trading via SIs.
Reference No.: 2019-185
