Short selling disclosure and its impact on CDS spreads

Lleshaj, Denisa; Kocian, Jannik

doi:10.1080/1351847x.2020.1858129

Cited by 3 publications

(1 citation statement)

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“…Due to the transmission of market information, the stock price changes caused by the short-selling front end will also release signals. According to Denisa's analysis, it is shown that the opening and increase of short positions are considered as negative information and that negative information has a greater impact on CDS spreads than positive information [6].…”

Section: Reviewmentioning

confidence: 99%

The Impact of Short-selling Institutions on Chinese Stock Companies and MarketFrom the Case of Luckin Coffee

Chen

2023

AEMPS

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As a major engine of the capital market, the stock market is favored by investors. But the huge profit space and operability are also easy to breed the soil of corruption and fraud. At present, due to the increased participation efficiency of short-selling institutions, the financial risks faced by enterprises have further increased. Through the case of Luckin coffee, we observe the stock price changes after it encountered short selling, combined with the model of the arbitrage pricing principle to find the role of short-selling institutions in the market. By disclosing corporate financial fraud, short-sellers can improve the effectiveness of market supervision to a certain extent, reduce the occurrence of stock market premiums, and bring stock prices back to their true levels. On the premise of ensuring the stability of the stock market and introducing a reasonable system, the Chinese market can also consider developing a similar mechanism to inject fresh blood into economic development.

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Section: Reviewmentioning

confidence: 99%