Short sellers and corporate disclosure

• Main Authors: CHEN, Xia, CHENG, Qiang, LUO, Ting, YUE, Heng
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2020
• Subjects: Short Sales; Corporate Disclosure; Management Forecasts; Earnings Recognition; Accounting
• Online Access: https://ink.library.smu.edu.sg/soa_research/1993; https://ink.library.smu.edu.sg/context/soa_research/article/3020/viewcontent/Short_sellers_and_corporate_disclosures.pdf
• Institution: Singapore Management University

We examine how short sellers affect corporate disclosures using a natural experiment. From May 2005 to July 2007, the SEC implemented a pilot program by randomly selecting one third of Russell 3000 stocks and removing the short sale price tests for these stocks (referred to as pilot firms), leading...