Portal de Periódicos da CAPES

Short Selling Risk

2013; RELX Group (Netherlands); Linguagem: Inglês

10.2139/ssrn.2312625

1556-5068

Joseph Engelberg, Adam V. Reed, Matthew C. Ringgenberg,

Housing Market and Economics

Short sellers face unique risks, such as the risk that stock loans become expensive and the risk that stock loans are recalled. We show that short-selling risk affects prices among the cross-section of stocks. Stocks with more short-selling risk have lower returns, less price efficiency, and less short selling.