@article{Luu_E-2023_136616,
title = {Short-selling activities in the time of COVID-19},
author = {Luu, E. and Xu, F. and Zheng, L.},
month = {may},
year = {2023},
abstract = {This study examines the daily short-selling activities in the U.S. market during the early 2020 outbreak of the COVID-19 global pandemic. Our findings indicate firms that are more sensitive to the shock (i.e., with high foreign exposure, low financial or operating flexibility, or high supply-chain exposure) were shorted more heavily. Moreover, short-selling activities during the COVID-19 pandemic, blamed for triggering stock market crashes, were primarily concentrated around overpriced stocks. This finding supports the argument that short selling plays a prominent role in improving price discoveries. Our research provides timely empirical evidence supporting the U.S. Securities and Exchange Commission’s (SEC) non-intervention approach in banning short selling in the U.S. market.},
journal = {The British Accounting Review},
publisher = {Elsevier},
url = {https://doi.org/10.1016/j.bar.2023.101216},
}
