price discovery process of the stock market; and whether the ban had any impact on market liquidity. Design …. The authors also find evidence of a liquidity decrease for short-sale intensive stocks. However, the evidence is … inconclusive as to whether the market efficiency and liquidity changes are solely the result of the short-sales ban or the compound …

(i.e. more efficient) for stocks with better liquidity provision, frequent trading, greater return volatility, higher … prices, larger market capitalizations and smaller trade sizes. These findings suggest that liquidity stimulates arbitrage …/implications Overall, these results indicate that liquidity provision, stock attributes and market structure exert a significant impact on …