Profiting from Perception: The Power of Unproven Allegations in Short Selling

Abhishek K V and Hrishitva Patel

MPRA Paper from University Library of Munich, Germany

Abstract: Short selling is a financial strategy that enables traders to profit from declining stock prices. This study examines the role of unproven allegations in influencing stock market movements, with a focus on their impact on public perception and short-selling outcomes. Using an event study methodology, the research analyzes key cases, including the allegations against the Adani Group, to assess how market reactions evolve in response to repeated accusations. The study explores the intersection of financial speculation, corporate reputation, and regulatory oversight, contributing to the broader discourse on market efficiency and the ethical implications of short-selling strategies.

Keywords: Adani; Hindenburg Research; Information systems; economics (search for similar items in EconPapers)
JEL-codes: F4 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:123554

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