Abstract
ABSTRACT The objective of this paper is to explore the effect of short selling on firm investment from the perspective of external financing. We find that short selling makes it more difficult for firms to finance investment projects with external funds, and firms react to this exogenous shock by reducing their investment. The effect is more obvious in firms with lower stock price synchronicity, more investment in innovation projects and more severe internal financing constraints. Moreover, we find that after removing short selling constraints, the value-added effect of firm investment on firm value is enhanced.
Full Text 
Sign-in/Register to access full text options
Sign-in/Register to access full text options 
Published version (
Free)
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
