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Go Down Fighting: Short Sellers vs. Firms

  • Owen Lamont

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.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 10659.

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Date of creation: Jul 2004
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Handle: RePEc:nbr:nberwo:10659
Note: AP CF
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