2020
DOI: 10.1016/j.jcorpfin.2019.101531
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Does short selling affect a firm's financial constraints?

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Cited by 83 publications
(60 citation statements)
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“… Cai, McGuinness, and Zhang (2011) found that weakening informational asymmetries underlie much of the change in the markets' relative pricing, where policy and corporate governance change appears to be the principal force driving the efficiency gains, while Meng, Li, Chan, and Gao (2020) identified, through the use of A-share data, the presence of a negative information effect from short-selling restrictions. Xianghai (1996) identified cross-sectional differences between the prices of both A- and B-shares, with evidence suggesting the presence of a correlation with investors' attitudes towards risk.…”
Section: Previous Literaturementioning
confidence: 99%
“… Cai, McGuinness, and Zhang (2011) found that weakening informational asymmetries underlie much of the change in the markets' relative pricing, where policy and corporate governance change appears to be the principal force driving the efficiency gains, while Meng, Li, Chan, and Gao (2020) identified, through the use of A-share data, the presence of a negative information effect from short-selling restrictions. Xianghai (1996) identified cross-sectional differences between the prices of both A- and B-shares, with evidence suggesting the presence of a correlation with investors' attitudes towards risk.…”
Section: Previous Literaturementioning
confidence: 99%
“…Relatedly, although SOEs have easier access to credit resources, they are less efficient than non-SOEs and ex ante more likely to have negative information waiting to be uncovered by short sellers (Meng et al, 2020). Indeed, Meng et al (2020) show that the adverse impact of short sales on financial constraints is more pronounced for SOEs, especially those with poor performance, suggesting that short selling can inhibit the inherent financing advantage of inefficient SOEs.…”
Section: Related Issuesmentioning
confidence: 99%
“…Relatedly, although SOEs have easier access to credit resources, they are less efficient than non-SOEs and ex ante more likely to have negative information waiting to be uncovered by short sellers (Meng et al, 2020). Indeed, Meng et al (2020) show that the adverse impact of short sales on financial constraints is more pronounced for SOEs, especially those with poor performance, suggesting that short selling can inhibit the inherent financing advantage of inefficient SOEs. Additionally, given that the social security system of China is still immature, SOEs in China often undertake various policy burdens, such as retaining redundant workers and being responsible for their employees' welfare (Kong et al, 2018).…”
Section: Related Issuesmentioning
confidence: 99%
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“…Mei, Scheinkman, and Xiong (2009) found that trading caused by investors' speculative motives can help explain a significant fraction of the price difference between Chinese dual-class shares, while Chan et al (2007) identified evidence of shifting informational patterns due to regulatory changes in February 2001, however A-shares continued to dominate the price discovery process. Cai, McGuinness, and Zhang (2011) found that weakening informational asymmetries underlie much of the change in the markets' relative pricing, where policy and corporate governance change appears to be the principal force driving the efficiency gains, while Meng, Li, Chan, and Gao (2020) identified, through the use of A-share data, the presence of a negative information effect from short-selling restrictions. Xianghai (1996) identified cross-sectional differences between the prices of both A-and B-shares, with evidence suggesting the presence of a correlation with investors' attitudes towards risk.…”
Section: Previous Literaturementioning
confidence: 99%