Abstract
Using hedge fund assets and institutional ownership (IO) as proxies for short-selling demand and supply, this paper investigates the determinants of increased short-selling activity on the NYSE/AMEX and NASDAQ from 1988 to 2011. Hedge fund assets, IO and liquidity are significantly related to short-selling activity, and the relationships are stronger in the 2001-2011 period than in the 1988-2000 period. The ownership of short-term hold institutions has a stronger relationship with short-selling activity than ownership of long-term hold institutions. Further, both the expected and unexpected components of short selling have stronger relationships with short-term IO than with long-term IO.
Sign-in/Register to access full text options 
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
