Competition of the informed: Does the presence of short sellers affect insider selling?

• المؤلفون الرئيسيون: MASSA, Massimo, QIAN, Wenlan, XU, Weibiao, ZHANG, Hong
• التنسيق: text
• اللغة: English
• منشور في: Institutional Knowledge at Singapore Management University 2015
• الموضوعات: Short selling; Insider trading; Informed trader; Market efficiency; Finance; Finance and Financial Management
• الوصول للمادة أونلاين: https://ink.library.smu.edu.sg/lkcsb_research/7050; https://ink.library.smu.edu.sg/context/lkcsb_research/article/8049/viewcontent/1_s2.0_S0304405X15001439_main.pdf
• المؤسسة: Singapore Management University

We study how the presence of short sellers affects the incentives of the insiders to trade on negative information. We show it induces insiders to sell more (shares from their existing stakes) and trade faster to preempt the potential competition from short sellers. An experiment and instrumental va...