We investigate the joint effects of short-selling, floating constraints and heterogeneous beliefs on stock prices by using a unique data set of cross-listed Chinese stocks. Because domestic A-shares are subject to both short-selling and floating restrictions while foreign H-shares are not,...

This study provides evidence that short selling influences the disclosure of bad news by firms. Managers have incentives to withhold or delay the release of bad news. As informed traders, short sellers enhance the informativeness of stock prices, especially related to bad news, potentially...

Unlike issuer-paid credit rating agencies (CRAs), investor-paid CRAs are compensated by investors for their rating services. This paper documents that the coverage of an investor-paid rating agency (the Egan Jones Ratings, EJR) increases rated firms' stock price informativeness. To alleviate...