A Study on the Impact of Shorting Mechanism on the Degree of Divergence of Investors' Opinions - Based on the Perspective of Listed Companies
DOI:
https://doi.org/10.62051/ijgem.v4n1.07Keywords:
Short-selling mechanism, Degree of investor disagreement, Listed companiesAbstract
This paper thoroughly investigates the impact of shorting mechanism on the degree of divergence of opinions among investors, and takes listed companies as the subject of the study. Through the method of empirical analysis, this paper reveals the intensifying effect of shorting mechanism on the disagreement among investors, especially in the complex and changing market environment, this effect is more significant. This finding not only provides a decision-making reference for investors, but also provides a theoretical basis for market regulators to formulate policies, which is of great significance for promoting the stability and healthy development of the market.
Downloads
References
[1] Boehmer, E., Jones, C. M., & Zhang, X. (2008). Which shorts are informed? The Journal of Finance, 63(2), 491-527.
[2] Bris, A., Goetzmann, W. N., & Zhu, N. (2007). Efficiency and the bear: Short sales and markets around the world. The Journal of Finance, 62(3), 1029-1079.
[3] Chen, J., Hong, H., & Stein, J. C. (2002). Breadth of ownership and stock returns. Journal of Financial Economics, 66(2-3), 171-205.
[4] Desai, H., Ramesh, K., Thiagarajan, S. R., & Balachandran, B. V. (2002). An investigation of the informational role of short interest in the Nasdaq market. The Journal of Finance, 57(5), 2263-2287.
[5] Diamond, D. W., & Verrecchia, R. E. (1987). Constraints on short-selling and asset price adjustment to private information. Journal of Financial Economics, 18(2), 277-311.
[6] Diether, K. B., Malloy, C. J., & Scherbina, A. (2002). Differences of opinion and the cross section of stock returns. The Journal of Finance, 57(5), 2113-2141.
[7] Engelberg, J., Reed, A. V., & Ringgenberg, M. C. (2012). How are shorts informed? Journal of Financial Economics, 105(2), 260-278.
[8] Fang, V. W., Huang, A. H., & Karpoff, J. M. (2016). Short selling and earnings management: A controlled experiment. The Journal of Finance, 71(3), 1251-1294.
[9] Jones, C. M., & Lamont, O. A. (2002). Short-sale constraints and stock returns. Journal of Financial Economics, 66(2-3), 207-239.
[10] Lamont, O. A., & Stein, J. C. (2004). Aggregate short interest and market valuations. American Economic Review, 94(2), 29-32.
[11] Miller, E. M. (1977). Risk, uncertainty, and divergence of opinion. The Journal of Finance, 32(4), 1151-1168.
Downloads
Published
Issue
Section
License

This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.







