We evaluate the role of foreign short-sale restrictions in muting the full return-response following negative earnings surprises for stocks cross-listed in unbanned markets. We update the global timeline of short-sale restrictions until the COVID-19 crisis period. Instead of regulatory price...

Independent boards improve financial disclosure quality and reduce the opacity of information between insiders and outsiders, which lowers the incentives of informed traders that benefit from the information gap. We test this conjecture by estimating short sellers' predictions of the direction...

We examine how board monitoring affects the ability of short sellers to correctly predict earnings surprise and the profitability of short selling. The results show that short sellers’ predictions are less accurate in firms with independent boards relative to firms with non- independent...

We characterize legality and incidence of short selling in a worldwide, multimarket framework. Home country short selling restrictions curtail home market stock borrowing by 45% and reduce short selling of the country's American Depository Receipts (ADRs) by 68% due to regulatory reach. Also,...

Like many countries, the U.S. is concerned that short selling might destabilize markets. Currently, U.S. SEC Rule 201 restricts short selling for stocks that decline 10 percent from the previous day's closing price. Historically, the U.S. has implemented both an uptick rule and a downtick rule...