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

• Main Authors: MASSA, Massimo, QIAN, Wenlan, XU, Weibiao, ZHANG, Hong
• 格式: text
• 語言: English
• 出版: Institutional Knowledge at Singapore Management University 2015
• 主題: Short selling; Insider trading; Informed trader; Market efficiency; Finance; Finance and Financial Management
• 在線閱讀: 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
• 機構: 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...