Download or read book The Causal Effects of Short Selling Bans written by Alan D. Crane and published by . This book was released on 2017 with total page 51 pages. Available in PDF, EPUB and Kindle. Book excerpt: We identify the causal effects of short-selling bans on stock prices using regression discontinuity (RD). We exploit three threshold-based rules that determine a stock's short-selling eligibility on the Hong Kong Stock Exchange. Short-selling bans affect short-selling volume at all thresholds. Despite this, bans do not affect price levels. Stock returns, volatility, and crash risk are not different for banned vs. unrestricted stocks when appropriate counterfactual stocks are used to measure a ban's effects. Our findings suggest that short-selling bans are not as costly as previously argued, but are ineffective at reducing volatility or buttressing prices.
Download or read book Effects of Short Selling Bans on Resiliency and Commonality in Liquidity written by Ester Félez-Viñas and published by . This book was released on 2019 with total page 41 pages. Available in PDF, EPUB and Kindle. Book excerpt: Using the unique implementation of a short selling ban on the financial stocks of Belgium, France and Italy, I find that short selling restrictions have contrasting effects on resiliency and commonality in liquidity. Short selling bans contribute to lowering the risk of financial contagion by decreasing the commonality in liquidity levels of banned stocks. However, the restrictions also cause a significant deterioration of resiliency, hindering the ability of banned stocks to recover from transitory liquidity deviations. Regulators around the world have reacted to episodes of financial instability by banning short selling. Yet, its detrimental side effects cast doubts on the effectiveness of the regulation.
Download or read book Short Sale Bans and their Impact on the Microstructure of Equity Markets written by Moritz Wiebke and published by GRIN Verlag. This book was released on 2021-04-27 with total page 65 pages. Available in PDF, EPUB and Kindle. Book excerpt: Master's Thesis from the year 2020 in the subject Economics - Finance, grade: 1,0, University of Vienna (Fakultät für Wirtschaftswissenschaften), language: English, abstract: This paper investigates the impact of short sale bans on the market microstructure of equity markets by focusing on three major stock market characteristics: (How) did the ban affect stock liquidity, (how) did the ban influence price efficiency, and did the regulators manage to stabilize stock prices by imposing short sale bans? On March 12, 2020, the EURO STOXX 50, the major European stock index declined by more than 12% - the largest loss ever reported on a single day since index inception in 1986. Other major stock indices around the globe experienced a similar drop. The Covid-19 crisis was about to hit and there was great uncertainty among investors, reflected by very volatile stock markets. The corresponding volatility index VSTOXX had its peak on March 16, 2020, with an implied volatility of 86%. To stabilize capital markets and restore the confidence of investors during volatile times, regulators can make use of temporary bans on short sales, i.e., restricting investors in their ability to profit from declining stock prices. This was the case in numerous countries during the financial crisis in 2007-09.
Download or read book The Real Effects of Short Selling Constraints written by Gustavo Grullon and published by . This book was released on 2014 with total page 51 pages. Available in PDF, EPUB and Kindle. Book excerpt: We use a regulatory experiment (Regulation SHO) that relaxes short-selling constraints on a random sample of US stocks to test whether capital market frictions have an effect on stock prices and corporate decisions. We find that an increase in short-selling activity causes prices to fall, and that small firms react to these lower prices by reducing equity issues and investment. These results not only provide evidence that short-selling constraints affect asset prices, but also confirm that short-selling activity has a causal impact on financing and investment decisions.
Download or read book Short selling Bans and Institutional Investors Herding Behaviour written by Martin T. Bohl and published by . This book was released on 2013 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: "Surprisingly, little is known about the effects of short-sale constraints on herd behaviour. Since institutional investors have come to dominate mature stock markets and rely extensively on short sales, constraining these traders may influence the asset pricing process. The literature on short-selling restrictions focusses mainly on a ban's impact on market efficiency, liquidity and overpricing. The authors examine bans on selected financial stocks in six countries during the 2008-2009 global financial crisis, which provided a setting to analyze the impact of short-sale restrictions. In particular, the authors focussed on short-sale constraints' effect on institutional investors' trading behaviour and the possibility of generating herding behaviour. They conclude that the empirical evidence shows that short-selling restrictions exhibit either no influence on herding formation or induce adverse herding." --
Download or read book The Intended and Collateral Effects of Short Sale Bans as a Regulatory Tool written by Terrence Hendershott and published by . This book was released on 2014 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: Short-sale bans have been utilized globally as a regulatory tool during periods of financial crisis. This paper reviews the observed intended and unintended effects of short-sale bans. Research has documented pervasive effects spanning many financial markets that include options, convertible bonds, credit default swaps, and exchange-traded funds. Such implications should be of interest to regulators and policymakers when contemplating future bans.
Download or read book Information Effect Risk Arbitrage and Effectiveness of Short Selling Ban written by Haowen Luo and published by . This book was released on 2014 with total page 12 pages. Available in PDF, EPUB and Kindle. Book excerpt: Information effects hypothesis and price pressure hypothesis are two major theories when explaining negative market reaction on acquiring firms' stock prices during stock financed mergers and acquisitions. However, it is difficult to hold the information effects constant and to distinguish between these two competing hypotheses. In this paper, I propose a methodology to investigate the information effects on stock financed mergers and acquisitions by studying acquiring firms' abnormal returns during short selling ban period between 2008 and 2013. This paper may also provide some evidence on effectiveness of short selling ban around the world by studying worldwide risk arbitrage activates during short selling ban period.
Download or read book The Effect of the European Short Selling Bans of 2011 on Financial Stocks in Foreign Markets written by Martin Schemm and published by . This book was released on 2014 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper investigates the effect of the short-selling bans introduced by France, Italy, Belgium, and Spain on 11 August 2011 on return and liquidity measures of financial stocks in Germany, the United Kingdom, Denmark, and a pooled sample of European financial stocks. Contrary to the predictions made in the media by several experts, this paper finds no evidence for Denmark, Germany, and the European sample that short-sellers moved their activities to these countries after the short-selling bans were introduced. In these markets, neither do stocks come under significant pressure immediately after the introduction of the bans, nor do liquidity measures indicate a significant increase in the number of short-sellers active in certain financial stocks. Trade volumes decrease significantly after the introduction of the bans, providing a further indication that short-sellers either did not increasingly target financial stocks in these markets, or that the movement was too small to be detected amidst overall market movements. For the United Kingdom, despite negative results in the long run, this paper finds supporting results for three out of four criteria over a one-week period, indicating that short-sellers may indeed have increasingly targeted British financial stocks after the introduction of the bans.
Download or read book Short Selling Ban and Its Impact to Stock Market written by Binod Chongbang and published by . This book was released on 2018 with total page 7 pages. Available in PDF, EPUB and Kindle. Book excerpt: Most of the financial regulators around the world such as ASIC, FSMA, CSRC, AMF, FFSA, FCA, SEC reacted to the 2007-09 turmoil and 2011 Greek debt crisis by imposing short sales restrictions. These series of events held and elevated at different dates and in different nations based on various sets of stocks featuring degree of severity. This paper examined several findings of research on shorting bans and its impacts to the security market in different aspects such as stock price and its behavior during ban, price discovery and the liquidity. It is also found that during the ban, activity related to shorting dropped by 77% and smallest stocks that was related to the ban underwent severely in market quality based on spreads, intraday volatility and price impacts. Those stocks, which are listed, did not provide any price impact but during the whole banning period it was underperforming constantly. Evidences portrays that the shorting ban did not generate any simulated improve in prices.
Download or read book This Time is Not Different written by Pierre Leslie Siklos and published by . This book was released on 2012 with total page 11 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Do Short selling Regulations Matter written by Giannoula Karamichailidou and published by . This book was released on 2013 with total page 562 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Handbook of Short Selling written by and published by Academic Press. This book was released on 2011-08-31 with total page 625 pages. Available in PDF, EPUB and Kindle. Book excerpt: This comprehensive examination of short selling, which is a bet on stocks declining in value, explores the ways that this strategy drives financial markets. Its focus on short selling by region, its consideration of the history and regulations of short selling, and its mixture of industry and academic perspectives clarify the uses of short selling and dispel notions of its destructive implications. With contributions from around the world, this volume sheds new light on the ways short selling uncovers market forces and can yield profitable trades. Combines academic and professional research on short selling in all major financial markets Emphasizes details about strategies, implementations, regulation, and tax advantages Chapters provide summaries for readers who want up-to-date maps of subject landscapes
Download or read book Research Handbook on Global Capital Markets Law written by Iris H.-Y. Chiu and published by Edward Elgar Publishing. This book was released on 2023-06-01 with total page 449 pages. Available in PDF, EPUB and Kindle. Book excerpt: This Research Handbook is a one-stop resource on global capital markets and the laws that regulate them. Featuring contributions from leading global experts, the Research Handbook delves into a range of issues including investment products such as equity finance; sustainable finance; fintech; impact investing; and private equity. It also provides analysis on institutional and procedural issues such as large and small companies' capital formation, the roles of institutional shareholders and information providers, and the practices and regulation of financial trading markets.
Download or read book Disrupting Finance written by Theo Lynn and published by Springer. This book was released on 2018-12-06 with total page 194 pages. Available in PDF, EPUB and Kindle. Book excerpt: This open access Pivot demonstrates how a variety of technologies act as innovation catalysts within the banking and financial services sector. Traditional banks and financial services are under increasing competition from global IT companies such as Google, Apple, Amazon and PayPal whilst facing pressure from investors to reduce costs, increase agility and improve customer retention. Technologies such as blockchain, cloud computing, mobile technologies, big data analytics and social media therefore have perhaps more potential in this industry and area of business than any other. This book defines a fintech ecosystem for the 21st century, providing a state-of-the art review of current literature, suggesting avenues for new research and offering perspectives from business, technology and industry.
Download or read book The Book of Why written by Judea Pearl and published by Basic Books. This book was released on 2018-05-15 with total page 432 pages. Available in PDF, EPUB and Kindle. Book excerpt: A Turing Award-winning computer scientist and statistician shows how understanding causality has revolutionized science and will revolutionize artificial intelligence "Correlation is not causation." This mantra, chanted by scientists for more than a century, has led to a virtual prohibition on causal talk. Today, that taboo is dead. The causal revolution, instigated by Judea Pearl and his colleagues, has cut through a century of confusion and established causality -- the study of cause and effect -- on a firm scientific basis. His work explains how we can know easy things, like whether it was rain or a sprinkler that made a sidewalk wet; and how to answer hard questions, like whether a drug cured an illness. Pearl's work enables us to know not just whether one thing causes another: it lets us explore the world that is and the worlds that could have been. It shows us the essence of human thought and key to artificial intelligence. Anyone who wants to understand either needs The Book of Why.
Download or read book Pain Management and the Opioid Epidemic written by National Academies of Sciences, Engineering, and Medicine and published by National Academies Press. This book was released on 2017-09-28 with total page 483 pages. Available in PDF, EPUB and Kindle. Book excerpt: Drug overdose, driven largely by overdose related to the use of opioids, is now the leading cause of unintentional injury death in the United States. The ongoing opioid crisis lies at the intersection of two public health challenges: reducing the burden of suffering from pain and containing the rising toll of the harms that can arise from the use of opioid medications. Chronic pain and opioid use disorder both represent complex human conditions affecting millions of Americans and causing untold disability and loss of function. In the context of the growing opioid problem, the U.S. Food and Drug Administration (FDA) launched an Opioids Action Plan in early 2016. As part of this plan, the FDA asked the National Academies of Sciences, Engineering, and Medicine to convene a committee to update the state of the science on pain research, care, and education and to identify actions the FDA and others can take to respond to the opioid epidemic, with a particular focus on informing FDA's development of a formal method for incorporating individual and societal considerations into its risk-benefit framework for opioid approval and monitoring.
Download or read book Commodities written by H. Kent Baker and published by Oxford University Press. This book was released on 2018-03-06 with total page 681 pages. Available in PDF, EPUB and Kindle. Book excerpt: Commodities: Markets, Performance, and Strategies provides a comprehensive view of commodity markets by describing and analyzing historical commodity performance, vehicles for investing in commodities, portfolio strategies, and current topics. It begins with the basics of commodity markets and various investment vehicles. The book then highlights the unique risk and return profiles of commodity investments, along with the dangers from mismanaged risk practices. The book also provides important insights into recent developments, including high frequency trading, financialization, and the emergence of virtual currencies as commodities. Readers of Commodities: Markets, Performance, and Strategies can gain an in-depth understanding about the multiple dimensions of commodity investing from experts from around the world. Commodity markets can be accessed with products that create unique risk and return dynamics for investors worldwide. The authors provide insights in a range of areas, from the economics of supply and demand for individual physical commodities through the financial products used to gain exposure to commodities. The book balances useful practical advice on commodity exposure while exposing the reader to various pitfalls inherent in these markets. Readers interested in a basic understanding will benefit as will those looking for more in-depth presentations of specific areas within commodity markets. Overall, Commodities: Markets, Performance, and Strategies provides a fresh look at the myriad dimensions of investing in these globally important markets.
