Financial Crime in Stock Exchange: The Case on the Stock Exchanges of the Europen Union States
Küçük Resim Yok
Tarih
2026
Dergi Başlığı
Dergi ISSN
Cilt Başlığı
Yayıncı
Springer Nature
Erişim Hakkı
info:eu-repo/semantics/closedAccess
Özet
This study examines how financial crime dynamics shape equity market performance in the European Union. Using an unbalanced panel of 27 EU member states over 2013 to 2023, we estimate short run effects of seven offense categories on national stock indices via dynamic panel generalized method of moments with difference and system estimators. Diagnostic tests, including Wald, Sargan and Hansen, and Arellano and Bond AR(1) and AR(2), support instrument relevance and the absence of second order serial correlation. Results are consistent across estimators: corruption, migrant smuggling, and money laundering display positive short run associations with index levels, whereas fraud, theft, unlawful information technology access, and environmental crime are negatively associated. We argue that the positive coefficients for corruption and laundering related indicators reflect transitory liquidity and risk taking rather than sound fundamentals, which implies heightened long run fragility through institutional erosion and higher risk premia. By contrast, crimes that directly undermine property rights, contractual enforcement, cyber integrity, and environmental compliance depress valuations through profitability and investor confidence channels. Policy implications emphasize stronger deterrence and supervisory technology for market abuse and property crimes, risk based AML/CFT regimes with beneficial ownership transparency and cross border coordination, and the embedding of sustainability and cyber resilience into disclosure and enforcement frameworks. Limitations include measurement error in crime statistics, annual frequency that may mask higher frequency dynamics, and EU only coverage. Future research should examine sectoral and firm level heterogeneity, use higher frequency data to detect structural breaks, and apply designs that sharpen causal identification. © The Author(s), under exclusive license to Springer Nature Switzerland AG 2026.
Açıklama
Anahtar Kelimeler
European Union States, Financial Crime, Gmm, Stock Exchanges
Kaynak
Contributions to Finance and Accounting
WoS Q Değeri
Scopus Q Değeri
Q4
Cilt
Part F2026
