Do short sales restrictions have an impact on security prices? We address this question in the context of a natural experiment surrounding the short sale ban of 2008 using a comprehensive sample of Canadian stocks cross-listed in the U.S. Among financial stocks, which were singled out by the ban...

We investigate the interplay between the distribution of ownership, short sale constraints, and market efficiency from the perspective of US cross-listed stocks domiciled in Canada during the short sale ban of 2008. Using minute-by-minute data, we show that prices in the two markets remained...