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Go Down Fighting: Short Seller vs. Firms

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  • Owen Lamont

Abstract

I study battles between short sellers and firms. Firms use a variety of methods to impede short selling, including legal threats, investigations, lawsuits, and various technical actions intended to create a short squeeze. These actions create short sale constraints. Consistent with the hypothesis that short sale constraints allow stocks to be overpriced, firms taking anti-shorting actions have in the subsequent year very low abnormal returns of about -2 percent per month.

Suggested Citation

  • Owen Lamont, 2004. "Go Down Fighting: Short Seller vs. Firms," Yale School of Management Working Papers amz2521, Yale School of Management, revised 01 Aug 2004.
    • Handle: RePEc:ysm:wpaper:amz2521
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    File URL: https://repec.som.yale.edu/icfpub/publications/2521.pdf
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    References listed on IDEAS

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