Does ownership structure matter for overshooting manipulation of hospitality and tourism stocks?

We investigate whether the function of ownership structure influences stock price overshooting manipulation for Taiwan Stock Exchange-listed tourism and hospitality firms because stock price overshooting occurs frequently for these firms after Chinese authorities relax restrictions on tourists visiting Taiwan. As a result, we demonstrate that some of these firms with a poorly functioning ownership structure may manipulate their share prices, resulting in overshooting phenomena, especially for stock price overbought phenomena. Following that, we discover that the directors and managers of these firms reduce their shareholdings, implying that such firms are likely to have corporate governance issues.