Short-sellers: Informed but restricted

Short sellers and corporate disclosures

We examine how short sellers affect corporate disclosures using a natural experiment. From May 2005 to July 2007, the SEC implemented a pilot program by randomly selecting one third of Russell 3000 stocks and removing the short sale price tests for these stocks (referred to as pilot firms), leading to lower short-selling constraint, without changing the requirement for other firms (referred to ...

Can Short-sellers Predict Returns? Daily Evidence

We test whether short-sellers in U.S. stocks are able to predict future returns based on new SEC-mandated data for 2005. There is a tremendous amount of short-selling activity during the sample: Short-sales represent 24 percent of NYSE and 32 percent of Nasdaq share volume. Our analysis shows that short-sellers primarily target short-term overreaction in stock prices, but they are also able to ...

Asymmetric Generosity but Not Agreement in Buyers’ and Sellers’ Offers

Economic Transactions among Friends ASYMMETRIC GENEROSITY BUT NOT AGREEMENT IN BUYERS’ AND SELLERS’ OFFERS

Two experiments tested the idea that economic transactions among friends are influenced by a norm of generosity. Whereas a fairness norm ought to promote agreement in offers between buyers and sellers, a generosity norm should promote altruistic disagreements caused by sellers offering lower prices than buyers—a reversal of the well-known endowment effect. Supporting the present account, in bot...

Do foreign short-sellers predict stock returns? Evidence from daily short-selling in Korean stock market ¬リニ

Article history: Received 12 September 2014 Accepted 20 January 2015 Available online 24 January 2015 We investigate the daily short-selling by foreign investors and their impact on stock price, liquidity, and volatility in the Korean stock market. From January 1, 2006, to May 31, 2010, we find that the majority of short-selling is performed by foreign, rather than by domestic, investors and th...