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Short selling and stock returns: Evidence from the UK

Allbwn ymchwil: Cyfraniad at gyfnodolyn › Erthygl › adolygiad gan gymheiriaid

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Short selling and stock returns: Evidence from the UK. / Mohamad, A.; Jaafar, A.; Hodgkinson, L. et al.
Yn: British Accounting Review, Cyfrol 45, Rhif 2, 01.06.2013, t. 125-137.

Allbwn ymchwil: Cyfraniad at gyfnodolyn › Erthygl › adolygiad gan gymheiriaid

HarvardHarvard

Mohamad, A, Jaafar, A, Hodgkinson, L & Wells, J 2013, 'Short selling and stock returns: Evidence from the UK', British Accounting Review, cyfrol. 45, rhif 2, tt. 125-137. https://doi.org/10.1016/j.bar.2013.03.001

APA

Mohamad, A., Jaafar, A., Hodgkinson, L., & Wells, J. (2013). Short selling and stock returns: Evidence from the UK. British Accounting Review, 45(2), 125-137. https://doi.org/10.1016/j.bar.2013.03.001

CBE

Mohamad A, Jaafar A, Hodgkinson L, Wells J. 2013. Short selling and stock returns: Evidence from the UK. British Accounting Review. 45(2):125-137. https://doi.org/10.1016/j.bar.2013.03.001

MLA

Mohamad, A. et al. "Short selling and stock returns: Evidence from the UK". British Accounting Review. 2013, 45(2). 125-137. https://doi.org/10.1016/j.bar.2013.03.001

VancouverVancouver

Mohamad A, Jaafar A, Hodgkinson L, Wells J. Short selling and stock returns: Evidence from the UK. British Accounting Review. 2013 Meh 1;45(2):125-137. doi: 10.1016/j.bar.2013.03.001

Author

Mohamad, A. ; Jaafar, A. ; Hodgkinson, L. et al. / Short selling and stock returns: Evidence from the UK. Yn: British Accounting Review. 2013 ; Cyfrol 45, Rhif 2. tt. 125-137.

RIS

TY - JOUR

T1 - Short selling and stock returns: Evidence from the UK

AU - Mohamad, A.

AU - Jaafar, A.

AU - Hodgkinson, L.

AU - Wells, J.

PY - 2013/6/1

Y1 - 2013/6/1

N2 - The practice of shorting stocks was put forward as one of the causes of the recent financial crisis whereas Shiller (2003), for example, considers shorting an essential element of an efficient market. Shorting involves selling borrowed stocks and subsequently closing the position by purchasing and returning the stock to the lender. A profit will be realised if the stock's price decreases. Shorting enables investors who do not own a perceived overvalued stock to sell. Using a high-frequency UK dataset for the period between September 2003 and April 2010, our findings suggest shorting indicates evidence of overvalued stocks as significantly negative abnormal stock returns appear to follow an increase in shorting. These results do not hold, however, for shorting which occurs around the ex-dividend date. We further find that these results hold during the recent financial crisis.

AB - The practice of shorting stocks was put forward as one of the causes of the recent financial crisis whereas Shiller (2003), for example, considers shorting an essential element of an efficient market. Shorting involves selling borrowed stocks and subsequently closing the position by purchasing and returning the stock to the lender. A profit will be realised if the stock's price decreases. Shorting enables investors who do not own a perceived overvalued stock to sell. Using a high-frequency UK dataset for the period between September 2003 and April 2010, our findings suggest shorting indicates evidence of overvalued stocks as significantly negative abnormal stock returns appear to follow an increase in shorting. These results do not hold, however, for shorting which occurs around the ex-dividend date. We further find that these results hold during the recent financial crisis.

U2 - 10.1016/j.bar.2013.03.001

DO - 10.1016/j.bar.2013.03.001

M3 - Article

VL - 45

SP - 125

EP - 137

JO - British Accounting Review

JF - British Accounting Review

SN - 0890-8389

IS - 2

ER -