In theory, banning short selling stabilizes stock prices but undermines pricing efficiency and has ambiguous impacts on market liquidity. Empirical studies find mixed and conflicting results. This paper leverages cross-country policy variation during the 2020 Covid crisis to assess differential...

In light of the recent state of global financial markets, the practice of short selling has come under increasing scrutiny. While financial institutions argue that short selling is a necessary mechanism for price discovery and contributes significantly to market liquidity, regulators view it as...

We investigate the liquidity effects of the short sale bans enacted by six European countries in March 2020 in response to the declining market brought about by the onset of the Covid-19 pandemic. Comparing stocks subjected to these bans to those in other European countries that did not...

In theory, banning short selling stabilizes stock prices but undermines pricing efficiency and has ambiguous impacts on market liquidity. Empirical studies find mixed and conflicting results. This paper leverages cross-country policy variation during the 2020 Covid crisis to assess differential...

In theory, banning short selling stabilizes stock prices but undermines pricing efficiency and has ambiguous impacts on market liquidity. Empirical studies find mixed and conflicting results. This paper leverages cross-country policy variation during the 2020 Covid crisis to assess differential...