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This paper studies the impact of disclosure on short selling. Using a confidential dataset on shorts on stocks traded … in the Dutch stock market including both short positions large enough to trigger public disclosure and positions not … are time-varying and change discontinuously when positions reach the disclosure threshold. These results suggest …
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I study short-sale constraints in a market with asymmetric information. I offer a novel approach endogenizing short-sale constraints by including an asset-borrowing market in my model. Short-sellers have to borrow an asset and therefore reveal information to a lender. The lender trades on her...
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