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In this study, we investigate the phenomenon of price manipulation in rights offering transactions using the data of share capital increase, price and ownership of firms in Iranian capital market. We find that blockholders reduce the share price by selling stocks during the rights trading period and then buying the rights at lower prices. We further find that the shareholders who bought the highest amount of the rights tend to sell a higher percentage of shares during the trading period, and the cumulative abnormal return is inversely related to the rate of sale of these blockholders. We also observe that the probability of price manipulation is higher for stocks with lower liquidity and... 

Price manipulation can lead to lack of transparency and impair proper functioning of financial markets. On the Tehran Stock Exchange, there is ample anecdotal evidence that some blockholders try to manipulate the price before the block transactions to change the share price significantly. In this paper, we provide empirical evidence that in intergroup block trades, blockholders tend to buy shares before the trade date or engage in round-trip transactions to increase the block shares price. No such evidence is found in intragroup transactions and other explanations such as market reaction to a change in corporate ownership seem more plausible than price manipulation. In addition to the... 

In this research, the effect of investment and transfer of state-owned companies on stock transactions on the day of trading in the stock market is investigated using data related to 54 major transactions in the years 2007 to 2020 using the event study method. And the results of this research can provide evidence for the positive and negative effects of major shareholders on the company, including monitoring and tunneling. The results of the research show that investment transactions have a positive return on stock trading days and divestment transactions have a negative effect on stock trading days. This effect in the case of investment transactions first increases and then decreases with...