In contrast to U.S. studies, we show that Australian short sellers do not front-run and profit after insider sales. Results are robust to conditional trading classified by book-to-market, intangible ratios, industry and multiple factor analysis. A combination of insider sales and short selling provides a contrarian signal that dampens prior overpricing, but is not associated with subsequent abnormal returns. We contend that the commercial and legal environment in Australia, together with the daily reporting of short sales, plays a significant role in restraining short selling profitability. Our results contradict front-running by short sellers in the U.S., that is explained by a business environment that induces the leakage of pre-traded negative information by corporate insiders. Overall, we highlight how information flow direction and profitability can be affected by different country legal and business cultures.