TY - JOUR
AU - Luu, Ellie
AU - Xu, Fangming
AU - Zheng, Liyi
PY - 2023
DA - May
TI - Short-selling activities in the time of COVID-19
JO - The British Accounting Review
DO - https://doi.org/10.1016/j.bar.2023.101216
AB - 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.
PB - Elsevier
UR - https://strathprints.strath.ac.uk/85555/
KW - Coronavirus (COVID-19)
ER