Market Integrity and Surveillance Effort
Maintaining and enhancing market integrity is a central objective of exchanges worldwide. However, there is relatively little research examining the efforts of exchanges in achieving this objective. Using unique data, this paper presents evidence on Australian Stock Exchange surveillance effort and the characteristics of alleged market manipulation. The evidence reveals significant and enhanced surveillance effort over time. Significant changes in the characteristics of alleged manipulation are also evident. Analysis of these changes indicates improved integrity outcomes in areas of persistent and targeted Surveillance effort.
At one level, this paper may be regarded as an exercise in comparative industrial organisation. We are primarily interested in accounting for the highly successful performance of Japanese manufacturing firms in the innovation process. In pursuing this goal, however, it will be necessary to ‘unpack’, and to examine critically, some intellectual baggage that has strongly shaped and influenced the approach to innovative activity in the recent past. To the extent that our approach is convincing, it suggests a reordering of focus and emphasis in the study of innovation.