Fellner, Gerlinde; Theissen, Erik - 2011 - This version: January 2011
The overvaluation hypothesis (Miller 1977) predicts that a) stocks are overvalued in the presence of short selling … to test these predictions in the laboratory. The results indicate that prices are higher with short selling constraints … lower and bid-ask spreads are higher when short sale restrictions are imposed. -- overvaluation hypothesis ; short selling …