Can Short Restrictions Actually Increase Informed Short Selling

@article{Kolasinski2013CanSR,
  title={Can Short Restrictions Actually Increase Informed Short Selling},
  author={A. Kolasinski and A. Reed and Jacob R. Thornock},
  journal={Financial Management},
  year={2013},
  volume={42},
  pages={155-181}
}
  • A. Kolasinski, A. Reed, Jacob R. Thornock
  • Published 2013
  • Economics
  • Financial Management
  • We use the 2008 short selling regulations to test whether short sale restrictions can increase informed short selling. For the preborrow requirement, we find more negative price reactions to short interest announcements though no reliable increase in the price impact of short sales volume. For the stocks with banned short sales, we find an increase in the price impact of short sale volume though no reliable change in the price reaction to short interest announcements. Both restrictions, however… CONTINUE READING
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