The Review of Asset Pricing Studies Vol. 2 No. 1 2012
Go Down Fighting: Short Sellers vs. Firms
Abstract
This study examines battles between short sellers and firms. Firms use a variety of methods to impede short selling, including legal threats, investigations, lawsuits, and various technical actions intended to create a short squeeze. These actions create short sale constraints. Consistent with the hypothesis that short sale constraints allow stocks to be overpriced, firms taking anti-shorting actions have in the subsequent year very low abnormal returns of about −2% per month.
- DOI
- 10.1093/rapstu/ras003
- Volume
- 2
- Issue
- 1
- Pages
- 1-30
- Language
- en
- Sources
- openalex crossref bibtex:phds-export.bib