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dc.contributor.authorAppel, Ianen_US
dc.contributor.authorFohlin, Carolineen_US
dc.date.accessioned2011-01-24en_US
dc.date.accessioned2011-09-27T15:18:17Z-
dc.date.available2011-09-27T15:18:17Z-
dc.date.issued2011en_US
dc.identifier.urihttp://hdl.handle.net/10419/49864-
dc.description.abstractWe find that the bans on covered short sales, implemented in several countries during the financial crisis of 2008-09 improved market liquidity or at least had a neutral impact; a result we argue could be expected in theory, given a simple variation on the Diamond-Verrechia (1987) model. The result holds for daily data over an extended period as well as for intraday data over various time spans. In contrast to other recent studies, we use American Depository Receipts as the controls in a difference-in-difference analysis encompassing all banned non-U.S. shares with corresponding depository receipts listed in the United States. Furthermore, we find that bans on covered short sales generally succeeded in lowering volatility. Banning short selling is not good policy in normal times, but our findings indicate that such bans might prove useful in (temporarily) stemming liquidity loss during crises.en_US
dc.language.isoengen_US
dc.publisherJohns Hopkins Univ., Dep. of Economics Baltimore, Md.en_US
dc.relation.ispartofseriesWorking papers // the Johns Hopkins University, Department of Economics 574en_US
dc.subject.jelG14en_US
dc.subject.jelG18en_US
dc.subject.ddc330en_US
dc.subject.keywordshort selling banen_US
dc.subject.keywordliquidityen_US
dc.subject.keywordvolatilityen_US
dc.titleShooting the messenger?': The impact of short sale bans in times of crisisen_US
dc.typeWorking Paperen_US
dc.identifier.ppn644506245en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen_US
Appears in Collections:Working Papers, Department of Economics, The Johns Hopkins University

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