We survey theoretical developments in the literature on the limits of arbitrage. This literature investigates how costs faced by arbitrageurs can prevent them from eliminating mispricings and providing liquidity to other investors. Research in this area is currently evolving into a broader agenda emphasizing the role of financial institutions and agency frictions for asset prices. This research...

This study aims to examine the impact of short selling constraints on corporate social responsibility (CSR) listed tourism companies in China. Based external governance theory, it is hypothesized that deregulation provides a monitoring function CSR performance companies, which are highly exposed and environmental problems. A multiple linear regression conducted with panel data Chinese 21 firms ...

We consider a model in which any investment opportunity is described in terms of cash flows. We don’t assume that there is a numéraire, enabling investors to transfer wealth through time; the time horizon is not supposed to be finite and the investment opportunities are not specifically related to the buying and selling of securities on a financial market. In this quite general framework, we sh...

We examine the short-selling ban imposed by National Commission for Companies and Stock Exchange of Italy, authority that regulates Italian securities market, on three energy stocks. find effect was temporary.

Purpose: Both short sellers and margin traders believe in active investment. However, they have the opposite opinions about prediction of future share price direction: while are those who predict declines, investors buying on increases. Short selling trading generally perceived to intensify stock volatility undermine market stability. this general perception investment practice lacks scientific...

We study the gain of an insider having private information which concerns the default risk of a counterparty. More precisely, the default time τ is modelled as the first time a stochastic process hits a random barrier L. The insider knows this barrier (as it can be the case for example for the manager of the counterparty), whereas standard investors only observe its value at the default time. A...