Duong, Truong X.; Huszár, Zsuzsa R.; Yamada, Takeshi
In this study, we examine the impact of a market-wide mandatory disclosure policy on short selling on the Tokyo Stock Exchange. We find that average short selling slightly declined while investors’ shorting strategies changed significantly in response to the disclosure. Previously highly shorted stocks were shorted less and shorting activity shifted toward smaller and riskier stocks, suggesting that retail investors became the more likely short sellers. Short sales became more trend-chasing,...[Show more]
Items in Open Research are protected by copyright, with all rights reserved, unless otherwise indicated.