Impact of short selling activity on market dynamics: Evidence from an emerging market

Sobaci, Cihat; Şensoy, Ahmet; Erturk, Mutahhar

doi:10.1016/j.jfs.2014.08.010

Cited by 24 publications

(17 citation statements)

References 27 publications

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“…Furthermore, the latest research would suggest that options and futures contribute to destabilization of market prices (Somanathan & Anantha Nageswaran, 2015). Evidence does indicate that short selling facilitates market liquidity and decreased volatility (Beber & Pagano, 2013; Sobaci, Sensoy, & Erturk, 2014). However, concern about their negative economic impacts has commonly led to short-selling bans (Beber & Pagano, 2013; Boehmer, Jones, & Zhang, 2013; Jones, 2012).…”

Section: Resultsmentioning

confidence: 99%

The conceptual and empirical relationship between gambling, investing, and speculation

Arthur¹,

Williams²,

Delfabbro³

2016

J Behav Addict

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Background and aimsTo review the conceptual and empirical relationship between gambling, investing, and speculation.MethodsAn analysis of the attributes differentiating these constructs as well as identification of all articles speaking to their empirical relationship.ResultsGambling differs from investment on many different attributes and should be seen as conceptually distinct. On the other hand, speculation is conceptually intermediate between gambling and investment, with a few of its attributes being investment-like, some of its attributes being gambling-like, and several of its attributes being neither clearly gambling or investment-like. Empirically, gamblers, investors, and speculators have similar cognitive, motivational, and personality attributes, with this relationship being particularly strong for gambling and speculation. Population levels of gambling activity also tend to be correlated with population level of financial speculation. At an individual level, speculation has a particularly strong empirical relationship to gambling, as speculators appear to be heavily involved in traditional forms of gambling and problematic speculation is strongly correlated with problematic gambling.Discussion and conclusionsInvestment is distinct from gambling, but speculation and gambling have conceptual overlap and a strong empirical relationship. It is recommended that financial speculation be routinely included when assessing gambling involvement, and there needs to be greater recognition and study of financial speculation as both a contributor to problem gambling as well as an additional form of behavioral addiction in its own right.

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Section: Resultsmentioning

confidence: 99%

The conceptual and empirical relationship between gambling, investing, and speculation

Arthur¹,

Williams²,

Delfabbro³

2016

J Behav Addict

View full text Add to dashboard Cite

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“…,Teulon et al (2014),Sobaci et al (2014),Sensoy et al (2014). For the applications of DECO model, seeSensoy (2013),Christoffersen et al (2014),Aboura and Chevallier (2014).…”

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confidence: 99%

Cross-sectoral interactions in Islamic equity markets

Yılmaz

Şensoy

Ozturk

et al. 2015

Pacific-Basin Finance Journal

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“…Literature on short selling suggests short sales contributes to efficiency in the stock markets (Boehmer et al, 2008;Chang et al, 2014;Boehmer and Wu, 2013;Cohen, 2010;Saffi and Sigurdsson, 2011;Chen and Rhee, 2010;Zhao et al, 2014) as it corrects the mis-pricing in stock. However, the constraints placed on short selling activities have been concluded by several researchers to decrease market liquidity resulting and in higher volatility and poor market quality Sobacı et al, 2014;Wang et al, 2013;Lee and Piqueira, 2017).…”

Section: Literature Reviewmentioning

confidence: 99%

“…This led to a ban on short selling that was later lifted in some markets and strict regulations were introduced in attempts to reduce volatility and strengthen the weakening market. This paper follows these literatures and investigates the effect of short selling on the financial markets after the crisis (Bohl et al, 2016;Deng and Gao, 2018;Sobacı et al, 2014).…”

Section: Introductionmentioning

confidence: 99%

The Effects of Short Selling on Financial Markets Volatilities

Baidoo¹

2019

EJOBSAT

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The paper investigates the relationship between short selling activities of stocks on the volatility of the US market and its sectors. We apply the multivariate DCC GARCH Model on the NYSE US 100 Index between November 2017 and October 2018. We find evidence that investments in some specific firms on the market reduce the market volatility and higher short selling activities reduce risk in the market. The study also finds that firms in the financial sector dominate the market and short selling activities in this sector has a greater impact on the market volatility. We also find portfolio managers to be better off investing in the market than creating portfolio within sectors.

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Impact of short selling activity on market dynamics: Evidence from an emerging market

Cited by 24 publications

References 27 publications

The conceptual and empirical relationship between gambling, investing, and speculation

The conceptual and empirical relationship between gambling, investing, and speculation

Cross-sectoral interactions in Islamic equity markets

The Effects of Short Selling on Financial Markets Volatilities

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