منابع مشابه
The Real Effects of Short Selling Activities
Does short selling help or hinder disciplining managerial behavior? We examine managerial investment decision in a model with informed short-selling and short-term managerial incentives and show that short selling can cause firms to overinvest. The overinvestment problem is more severe for managers with stronger short-term incentives and for firms that lack quality investment opportunities. Emp...
متن کاملShort-Selling Attacks and Creditor Runs
This paper investigates the mechanism through which short selling of a banks stocks can trigger the failure of the bank. In the model, creditors, who learn information from stock prices, will grow increasingly unsure about the banks true fundamentals in facing noisier stock prices; thus a run on the bank is more likely because of creditors concave payo¤. Understanding this, speculators condu...
متن کاملShort Selling and Default Prediction: International Evidence
We examine how short selling affects the accuracy of default prediction models. Our results indicate that a dynamic multiperiod logit model accurately predicts 18 percentage points more actual occurrences of default in countries where short-selling is widely practiced. Moreover, our analyses indicate that short selling has virtually no impact on the proportion of inaccurately classified non-def...
متن کاملPredatory Short-selling and Self-fullling Crises
This paper investigates the mechanism through which short-selling can cause failures of nancial rms and state nancing. We show that the fundamental problem of short-selling is that it leads to an increase in uncertainty and information asymmetry on the rms or the sovereigns fundamentals. Debtholders, who care about downside risk but not upside risk, are averse to fundamental uncertainty. ...
متن کاملSupplier Short Selling and Customer News
This paper examines whether short sellers exploit information in economically linked firms to undertake profitable trades. Using newly available information on firm-level customer-suppliercompetitor relationships and Reg SHO daily short sales data, we find that the short selling of supplier stock increases with negative post-news customer returns, and that the relation becomes more pronounced i...
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ژورنال
عنوان ژورنال: Economics Letters
سال: 2008
ISSN: 0165-1765
DOI: 10.1016/j.econlet.2007.06.012