Short selling restrictions and index futures pricing: Evidence from China

Lepone, Andrew; Wen, Jun; Wong, Jin Boon; Yang, Jin Young

doi:10.1016/j.iref.2019.02.002

Cited by 11 publications

(3 citation statements)

References 25 publications

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“…Therefore, shortsellers trading behaviors imply information signals to less-informed investors (Hu and Chi, 2019). Lepone et al (2019) studied the impact of short-selling restrictions on futures mispricing in the market. It was found that short-selling restrictions result in more persistent futures underpricing in the market.…”

Section: Scientific Journal For Financial and Commercial Studies And Researches (Sjfcsr) Faculty Of Commerce -Damietta Universitymentioning

confidence: 99%

The impact of short-selling on market efficiency and liquidity: Evidence from the emerging market of Egypt

فرج¹,

الشايب²

2022

المجلة العلمیة للدراسات والبحوث المالیة والتجاریة

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The purpose of this study is discussing the recent initiative to activate the short-selling mechanism in Egypt, through the issuance of the regulatory decision no. (268) of 2019 on short-selling. Besides, investigating its effect on market efficiency and liquidity according to market participants' perceptions. A questionnaire was formulated to explore the perceptions of academics, financial analysts, and brokers regarding the possible effects of the activation of short-selling mechanism on market efficiency and liquidity. Data were analyzed using descriptive statistics and multiple regression. Results of analyzing the 117 received questionnaires show that short-selling would not improve market efficiency, measured through price discovery and informativeness. However, there is a significant positive relationship between short-selling and financial reporting quality. Moreover, responses show a significant positive relationship between short-selling and market liquidity measured through; trading activity and volume, bid and ask spread, turnover ratio, and reduced market volatility. These findings support the assumption that short-selling could act as a mechanism to improve liquidity even in emerging markets. This study would benefit policymakers, in Egypt and any other countries with similar contexts, and foreign investment decisions. As it is important to investigate the opinion of parties who would be affected by lifting the restrictions on short-selling.

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Section: Scientific Journal For Financial and Commercial Studies And Researches (Sjfcsr) Faculty Of Commerce -Damietta Universitymentioning

confidence: 99%

The impact of short-selling on market efficiency and liquidity: Evidence from the emerging market of Egypt

فرج¹,

الشايب²

2022

المجلة العلمیة للدراسات والبحوث المالیة والتجاریة

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“…In countries or regions with imperfect market systems, government intervention is inevitable. At present, local governments in China are still in a state of strong association with firms, which has an important influence on their decision‐making (Chang et al, 2014; Chen, Sun, et al, 2011; Lepone et al, 2019; Lin & Wong, 2013).…”

Section: Theoretical Frameworkmentioning

confidence: 99%

“…A growing stream of research links government involvement to corporate decisions and outcomes (Chang et al, 2014; Chen, Sun, et al, 2011; Lepone et al, 2019; Lin & Wong, 2013). In this study, we examine whether firms, via evidence of environmental responsibility, respond to government environmental governance.…”

Section: Introductionmentioning

confidence: 99%

External governance pressure and corporate environmental responsibility: Evidence from a quasi‐natural experiment in China

Liu

Yan

et al. 2022

Business Ethics Env & Resp

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In recent years, the Audit Pilot of Natural Resources Assets (APNRA) pilot program has been implemented by the Chinese government to strengthen the protection of natural resources and the ecological environment. Based on the APNRA pilot program, we use the multi-period differences-in-differences model to investigate the response of corporate environmental responsibility to external governance pressure. We find that firms significantly improve their environmental investment and performance after the implementation of the APNRA pilot program. Sewage charges (including green fees) and ecological protection incentives constitute the two main channels that explain the positive relationship. We further find that the impact of the program on corporate environmental investment and performance is more pronounced for firms in regions with poor environmental quality, and for firms in heavy-polluting industries. This paper introduces the role of government governance in generating positive externality for firms and provides a valuable understanding of environmental governance in an emerging market.

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Mapping the field of behavioural biases: a literature review using bibliometric analysis

et al. 2021

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Short selling restrictions and index futures pricing: Evidence from China

Cited by 11 publications

References 25 publications

The impact of short-selling on market efficiency and liquidity: Evidence from the emerging market of Egypt

The impact of short-selling on market efficiency and liquidity: Evidence from the emerging market of Egypt

External governance pressure and corporate environmental responsibility: Evidence from a quasi‐natural experiment in China

Mapping the field of behavioural biases: a literature review using bibliometric analysis

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