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Can short selling activity predict the future returns of non-shortable peer firms?

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  • Hu, Ting
  • Chi, Yanzhe

Abstract

•Short selling activity has a “spillover” effect on related peer firms.•Short sellers play an important role in the intra-industry information transfer.•Short selling is negatively related to the future returns of non-shortable stocks.•Short selling is related to future changes in non-shortable firms' fundamentals.

Suggested Citation

  • Hu, Ting & Chi, Yanzhe, 2019. "Can short selling activity predict the future returns of non-shortable peer firms?," Pacific-Basin Finance Journal, Elsevier, vol. 53(C), pages 165-185.
    • Handle: RePEc:eee:pacfin:v:53:y:2019:i:c:p:165-185
    DOI: 10.1016/j.pacfin.2018.10.007
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