Short covering trades

• Main Authors: BOEHMER, Ekkehart, DUONG, Truong X., HUSZAR, Zsuzsa R.
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2018
• Subjects: Short Selling; Short Covering; Informed Trading; Finance and Financial Management; Portfolio and Security Analysis
• Online Access: https://ink.library.smu.edu.sg/lkcsb_research/5877; https://ink.library.smu.edu.sg/context/lkcsb_research/article/6876/viewcontent/ShortCoveringTrades_2016_afv.pdf
• Institution: Singapore Management University

Short sellers are known to have private information about security prices. Empirical evidence of short selling, however, is based on only half of short sellers’ trading activity; specifically, the opening of the position. Using disclosed large short position data from the Japanese stock market, we p...