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...

In this paper we revisit the question of whether relative performance-adjusted contracts provide portfolio managers with adequate incentives to gather information. We show that when portfolio managers are constrained in their ability to short-sell, relative performance-adjusted or linear ‘benchmarked’ contracts can provide incentives for gathering more precise information. We also provide condi...