Short-sales and stock price crash risk: Evidence from an emerging market

Xiaoran Ni and Weikang Zhu

Economics Letters, 2016, vol. 144, issue C, 22-24

Abstract: Using a regulatory change in China as an exogenous shock, we find that the removal of short-sales constraints increases stock price crash risk. This relation is attenuated when firms suffer less from information asymmetry, highlighting the effect of interaction between uninformed and informed investors.

Keywords: Quasi-natural experiment; Short-sales; Stock price crash risk; Emerging market; Information asymmetry (search for similar items in EconPapers)
JEL-codes: G1 K2 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (16)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:144:y:2016:i:c:p:22-24

DOI: 10.1016/j.econlet.2016.04.029

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