Selling Volume Research Articles

Does Short Selling Regulate Insider Trading?

This study investigates the impact of short selling on the relationship between the insider net buying ratio and excess returns, as well as on insider selling volume. The research period is divided into three distinct phases: short selling allowed, short selling banned, and partial short selling. The two primary findings of the analysis are as follows. First, the profitability of insider trading, assessed through the relationship between the insider net buying ratio and excess returns, is impacted positively when short selling is banned and negatively when it is permitted. Second, the insider selling volume significantly increases following short selling bans and decreases when the same is allowed. These results suggest that short sellers function as a market discipline mechanism, regulating both the profitability and volume of insider trading. This indicates that short selling regulations wield a substantial influence on the behavior and profitability of insider trading.

The individual motivation of investors' gambling mentality: Empirical evidence from gambling sentiment and lottery‐type stocks

AbstractWe construct a measure of public gambling sentiment using the Baidu index and empirically examine the influence of temporal fluctuations in gambling sentiment on the performance of lottery‐type stocks. The empirical findings reveal that heightened gambling sentiment correlates with increased selling volume, short‐term order imbalances and liquidity in the lottery‐type stock market, while diminishing abnormal returns, including the initial returns of IPOs. We attribute this to investors' gambling mentality stemming from the accumulation of wealth rather than the pursuit of excitement, as they view lotteries and lottery‐related stocks as interchangeable investment options.

Can foreign investors accurately operate and obtain excess returns? Evidence from China

ABSTRACT This study examines the influence of foreign investors’ trading strategies on the earnings of China’s A-shares based on trading data from Shanghai-Shenzhen Stock Exchanges during the period of 2017 to 2020. The findings indicate a positive association between the net inflow of foreign capital and A-share returns, with foreign investors showing a preference for high-quality stocks in China. Additionally, foreign investors demonstrate precision in their operations, by purchasing stocks at low prices and selling them at high prices. Moreover, A-shares held by foreign investors show an ability to generate excess earnings, which can further amplify over time. Additional analyses suggest that when the A-share index rises, foreign investors sell significantly, but the buying volume is not significant; when the A-share index falls, foreign investors buy significantly, but the selling volume is not significant. When Shanghai-Shenzhen Stock Connect is closed, foreign investors will choose to sell more on the previous trading day in order to reduce their losses. This article provides powerful enlightenment for stock investors.

Peran PLUT - UMKM Dalam Proses Pendampingan dan Kerjasama Permodalan UMKM di Kabupaten Tulung Agung

This study was triggered by the emerging of the developing of UMKM in Tulungagung Regency. UMKM or Usaha Mikro Kecil dan Menengah is considered as an economic unit which needs enhancement, guiding from related stakeholders in order to enable at earning products and service to sell towards the common people or community. This study deployed a descriptive qualitative method by displaying a case study design which showed research procedure and gained descriptive data as the written text. The study’s objective was to analyze the role of PULT-UMKM in enhancing UMKM in Tulungagung Regency. The result of study showed that PULT provided various services to UMKM entrepreneurship by delivering guidance facilitate business permit such as Business Identity Number (NIB), Food Household Industry (PIRT), Halal Certification and other permits in order to support UMKM products of Tulungagung Regency, including obtaining legalization and recognition of society that those products were affordable to consume. Besides, the guidance or enhancement of marketing of UMKM products digitally as well conventionally was done by PLUT-UMKM toward any in pursuance of increasing selling volume of UMKM Tulungagung Regency. Instead of those services, PLUT-UMKM also provides UMKM entrepreneurship to establish capitalization cooperation not only from financial or depository institutions but also non depository institutions (LKNB), including any assistance of the government and the Corporate Social Responsibility (CSR).

Impact of imported Indian buffalo meat on red meat supply and demand in South Kalimantan, Indonesia

Since 2016, the government introduced the domestic beef market to Indian buffalo meat (IBM). However, the impact of IBM on regional beef supply and demand has not been fully investigated. This study aimed to study the impact of IBM on the supply and demand of local beef in South Kalimantan (KalSel), Indonesia. Surveys were conducted with slaughterhouses, beef distributors, butchers, meatball makers, and resellers both at the supermarkets and wet markets. Secondary data were collected from Banjarmasin Quarantine Office and Livestock and Animal Health Service of Kalsel. Data indicated an increase of IBM imported into Kalsel, from 38-675 tonnes in 2017 and 2019. There was a decline of live cattle imported from inter-island, from 27,240 head in 2016 to only 12,788 head in 2019. Slaughtered cattle and beef production declined from 39,747 heads in 2016 to 31,058 heads in 2019 and 8,691 tons in 2016 to 6,791 tons in 2019. Butchers reported beef selling volume has been reduced by 50-70% compared to 2016. This study showed IBM has had significant impacts on inter-island cattle supply, local beef production and beef demand in the wet market but has no impact on local beef price.

Analysis of the Impact of Product and Advertising Innovation on Sales Volume

This study aims to determine the effect of Product Innovation on Selling Volume at Gunung Teknik Stores, determine the effect of Advertising on Selling Volume at Gunung Teknik Stores, determine the effect of Product Innovation and Advertising on Selling Volume at Gunung Teknik Stores. The research methodology used is quantitative descriptive method. The type of data used in this study is quantitative data, that is data obtained in the form of numbers or numeric. The population in this study were all stores that had made purchases at the Gunung Teknik Store in 2019. Using the Slovin formula with an error rate of 5%, a total sample of 265 respondents was obtained. Data were analyzed using multiple linear regression analysis methods. The results showed that Product Innovation and Advertising had a positive and significant effect on Selling Volume at Gunung Gunung Store based on the results of the simultaneous hypothesis test.

Analysis of Halal Certification Renewal Service Quality and Their Effect on the Customer’s Satisfaction and Loyalty in Yogyakarta (Case Study in Meatball Stall)

The society awareness in consuming halal, safe, and healthy foodstuff within these past few years kept on increasing. This was closely related to responsible food manufacturers which produced sustain halal foods, as evidenced by ownership halal certification. In order to increase the satisfaction of food producers and to maintain their commitment to extend the halal certificates, the quality of halal authority service should always be enhanced. This study aims to identify the Customer Satisfaction Index (CSI) value, to determine the influence of halal label and product attributes toward customer’s satisfaction and loyalty of meatball stalls in Yogyakarta, and to identify the influence of halal label toward selling volume on certified meatball stalls. The instruments used were questionnaires containing 21 quality attributes of halal certificate renewal service. Analyses were performed using Structural Equation Modeling (SEM). The model was composed of seven latent variables: halal certification, brand, price, taste, service, customer satisfaction and customer loyalty. Result of the research showed that taste and halal certification have significant effect on the customer’s satisfaction and loyalty of certified meatball stalls. Halal certification have affected the certified meatball stalls in Yogyakarta by increasing the selling volume of 25-37.5%.

Short Selling and Dark Pool Volume

Prior research posits that traders with short-lived information favor lit exchanges over dark pools due to execution certainty. This paper focuses on the relation between informed trading based on firm fundamentals and dark pool volume because the preferred venue for traders with longer-lived information is less certain. The proportion of trading volume executed in dark pools is positively correlated with short interest. This result is stronger for stocks that suffer from greater uncertainty and stocks targeted by transient institutional investors. Short sellers profit substantially from their information as subsequent returns are lower for heavily shorted stocks with greater dark pool volume.

Analisa Pengaruh Biaya Promosi dan Harga Jual Terhadap Volume Penjualan pada Perusahaan Properti di Daerah Lampung

Buying things is an activity that has been done since the first age of humanity. People buy things to fulfill living needs, may it be primary, secondary, or tertiary needs. At first humans used barter system, where people trade an item for another things, such as service or goods. Nowadays human uses money for buying things, and today, Indonesia economic power is rising among the globe. Based on that increase, people get more income, and upgrade their lifestyle. One of the things to buy for such need is property. When it comes to property, like other things, people will look into promotion and selling price, thus the two variables has been used for this research. The goal of this research is to understand whether those two variables has impact or not to selling volume. The data used for making this research is from a property company based in Lampung. The data was taken from the company annual yearly monetary report from year 2015 to 2018. One factor to take note is that the selling price was controlled by government since the company was selling government subsidiary backed houses, therefore the only variable that the company can fully control was the promotion cost. The conclusion was that the price doesn’t affect much of the selling volume, therefore the company should focus on better promotion programs.

Short Interest and Market Risk Premium: The Case of the Korean Market

This study investigates the predictability of short interest over aggregate market risk premium. We construct an aggregate short interest index (SII) using firm-level short interest data, and use predictive regression analysis to compare the predictive power of SII and widely used macro variables. We find that the SII outperforms the macro variables under short-term forecasts and asset allocation. This supports our hypothesis that although short sellers are informed traders, they cannot eliminate the mispricing owing to arbitrage limit and low short selling volume. We demonstrate that the market predictability of SII mostly stems from the future cash flow channel. Key words: Short Interest Index; Market Risk Premium; Macro Variables; Predictive Regression; Informed Traders JEL Classification: C22, C58, G14, G15

Do individual investors demand or provide liquidity? New evidence from dividend announcements

This paper provides new evidence related to whether individual investors demand or provide liquidity. While net trading is often used in the literature, it is improper in our research since buying and selling by individual investors increase by almost the same amount around dividend announcements. By differentiating buying and selling, we find that individual buyers demand liquidity while individual sellers provide liquidity around dividend announcements. Specifically, the buying volume of individual investors before and during dividend announcements negatively predicts future returns, while it is positively associated with past and contemporaneous returns. The selling volume of individual investors shows a similar relationship with returns.

Pengaruh Modal, Harga Dan Volume Penjualan Terhadap Pendapatan Pedagang Pengecer Kelapa Di Pasar Langsa Kota

The coconut retailer run the business to get a worth profit to fulfill their family needs and develop their business also. This research used a survey method. To define the sample used ad full sampling. The coconut retailer sample was 29 person and analyzed used multiple linear regression. The result showed that stock, price and selling volume effected the coconut retailer profit in Langsa City Market.

PENGARUH PROMOSI TERHADAP VOLUME PENJUALAN FRUIT TEA PADA PT. SINAR SOSRO KANTOR PENJUALAN CIBINONG

PT Sinar Sosro is a pioneer in Indonesia‟s biggest tea beverage industry, by inventing the first glass-bottled tea beverage product in Indonesia and in the world, with its trademark „Teh Botol Sosro‟. One of Sosro product innovation is fruit-flavoured tea, known with the brand “Fruit Tea”. Following the success of PT SS, more and more tea processing company try to trail Sosro.In order to maintain its market, one thing that should be continuously done is the promotion activity.The aim of this research is to find out the influence of promotion (publicity and sales promotion) to selling volume of Fruit Tea in PT Sinar Sosro KP Cibinong.The method used in this research is multiple regression analysis. The result of this research shows that publicity and sales promotion simultaneously influence significantly and positively to the selling volume. While partially, publicity influences significantly yet negatively to selling volume, and sales promotion influences significantly yet positively to selling volume.Keyword: marketing, promotion mix, publicity, sales promotion

Trading volume and prediction of stock return reversals: Conditioning on investor types' trading

AbstractWe show that contrasting results on trading volume's predictive role for short‐horizon reversals in stock returns can be reconciled by conditioning on different investor types' trading. Using unique trading data by investor type from Korea, we provide explicit evidence of three distinct mechanisms leading to contrasting outcomes: (i) informed buying—price increases accompanied by high institutional buying volume are less likely to reverse; (ii) liquidity selling—price declines accompanied by high institutional selling volume in institutional investor habitat are more likely to reverse; (iii) attention‐driven speculative buying—price increases accompanied by high individual buying‐volume in individual investor habitat are more likely to reverse. Our approach to predict which mechanism will prevail improves reversal forecasts following return shocks: An augmented contrarian strategy utilizing our ex ante formulation increases short‐horizon reversal strategy profitability by 40–70% in the US and Korean stock markets.

Analyzing Stock Brokers’ Trading Patterns: A Network Decomposition and Spatial Econometrics Approach

Using a unique data set with all the daily transactions from the Santiago Stock Exchange, we develop a novel methodology that combines a network decomposition with a spatial econometrics technique to study how brokers’ characteristics and trading decisions may affect the stock market return. We present suggestive evidence of a mechanism by which structural changes of the transaction network between brokers affect the aggregate returns of the stock market. We find that brokers tend to trade with counterparties with dissimilar intraday selling volume when market return significantly increases. Moreover, brokers with a research department tend to sell to brokers without a research department when the market experiences a considerable increase of its return. From the financial perspective, these results highlight new ways in which intermediaries may affect market equilibrium and the efficiency of the market.

Information leakage in family firms: Evidence from short selling around insider sales

Using a novel insider trading and short selling dataset from the Hong Kong Stock Exchange (HKEx), we investigate potential information leakage from corporate insiders to short sellers, particularly in family firms. Even without the presence of market makers in the HKEx, we document a significant increase in short selling volume before insider trades are released to the public. The non-monotonic relationship between the short selling intensity and family control contributes to the debate on whether family presence facilitates or limits information leakage. In addition, trading by non-family insiders is more likely to convey private information, as compared to family insiders.

Short Selling and the Subsequent Performance of Initial Public Offerings

This paper examines short sales transaction volumes on the first trading day of 610 initial public offerings (IPOs) from 2011 to 2015. The tests provide evidence of informed trading immediately at the IPO. Results reveal that short selling volume on the first trading day of the IPO is significantly negatively linked to subsequent stock returns and accounting performance. Heavily-shorted IPOs underperform lightly-shorted IPOs by a risk-adjusted average of 22.68% annualized return. Heavily-shorted IPOs have the highest probability of analyst downgrades within the first year after the IPO. Short selling is higher in hot IPOs with higher demand and higher first-day return. These stocks are overpriced at the end of the first trading day, implying that short sellers are sophisticated investors taking advantage of the overpricing. Overall, the results indicate that short sellers are important contributors to efficient stock prices.

KAJIAN HUBUNGAN KEBIJAKAN BAURANPEMASARANDAN VOLUME PENJUALAN GULA MERAH (SAKA) RAKYAT DI KABUPATEN TANAH DATAR SUMATERA BARAT

Brown sugar (saka) is one of alternative goods to fill sugar demand in Indonesia. This product is mainly produced by local agroindustries that disperse in many regions, one of the location is in Tanah Datar Regency. The aims of this study are to describe the marketing mix and to analyze the relation between marketing mix and selling volume of brown sugar in Tanah Datar Regency. Variables of this research are 4P of marketing mix and selling volume. The data is collected from farmer who produced traditionally, that spread in three district, then using quantitative analyze. The result of this research shows that product is molded by piece of coconut shell (diameter: 3-5 cm), the color is brown, reddish and yellowish, the selling price about Rp 10.000 - 15.000/Kg, and distributted through collecting traders or directly sold in market, and also have no promotion yet. The result of Chi Square analyze shows that there are relation between selling price variable with product variable, whereas place/ distribution variable is not.Keywords : brown sugar, agroindustry, marketing mix

Short Selling, Insider Trading and Large Controlling Shareholders

Using a dataset of insider trading and short selling from the Hong Kong Stock Exchange, we investigate the impact of large controlling shareholders on short sellers’ ability to predict insider trading. We document a significant increment in short selling volume before the information of insider sales is released to the public. Compared to widely held companies, insider trading in firms with large controlling owners triggers stronger short sales. Further, the abnormal short sales are more concentrated in family-controlled firms rather than state-controlled firms. The evidence of a concave relationship between the intensity of short selling and controlling power in family firms contributes to the ongoing debate on whether and when the entrenchment effect of large shareholders dominates the alignment effect. Within family-controlled firms, trading by non-family owners attracts more attention of short sellers. Overall, our analysis provides new evidence about the information interaction between short sellers and insiders and also the effect of the presence of large controlling shareholders on the information flows from insiders to outsiders.

Short Selling in OTC Stocks: Information or Manipulation?

We examine short selling activity in OTC stocks using short selling volume and short interest data for a period from 2009 to 2016. We find that on average short volume constitutes 48% of daily trading volume in OTC stocks. Similar to exchange traded stocks, a portfolio with short position in stocks with high short selling volume and long position in stocks with low short selling volume has significant positive returns. Surprisingly, this positive return reverses over a period of next 1-month, indicating manipulative short selling. OTC stocks have higher short selling after a period of positive returns and on days of positive returns. Unlike exchange-traded stocks, short interest does not have predictive power for future returns. Short interest increases when the return over the past 15 days is positive, but it is lower for stocks with positive return over the last 1 year.