Cai, Tianyu; Guo, Lixiong; Tan, Yongxian - 2021
We study the causal effects of short selling on real earnings management by exploiting an exogenous shock to short … of real earnings management in pilot firms relative to non-pilot firms during the pilot program period. The effect is …-based earnings manipulation, our paper completes the picture of how short selling affects earnings management and indicates that …