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Go Down Fighting: Short Sellers vs. Firms

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  • Owen A. Lamont
Abstract
This study examines battles between short sellers and firms. Firms use a variety of methods to impede short selling, including legal threats, investigations, lawsuits, and various technical actions intended to create a short squeeze. These actions create short sale constraints. Consistent with the hypothesis that short sale constraints allow stocks to be overpriced, firms taking anti-shorting actions have in the subsequent year very low abnormal returns of about −2% per month.

Suggested Citation

  • Owen A. Lamont, 2012. "Go Down Fighting: Short Sellers vs. Firms," The Review of Asset Pricing Studies, Society for Financial Studies, vol. 2(1), pages 1-30.
    • Handle: RePEc:oup:rasset:v:2:y:2012:i:1:p:1-30.
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    File URL: http://hdl.handle.net/10.1093/rapstu/ras003
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    References listed on IDEAS

    as
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    7. Almazan, Andres & Brown, Keith C. & Carlson, Murray & Chapman, David A., 2004. "Why constrain your mutual fund manager?," Journal of Financial Economics, Elsevier, vol. 73(2), pages 289-321, August.
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    More about this item

    JEL classification:

    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading

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