Chapter 17. Impact of Short Selling on China Stock Prices
Kaiguo Zhou and Michael C.S. Wong
This chapter investigates the impact of short selling on China stock prices. As short selling was approved in China on March 30, 2010, it provides a very unique data set to test the impact of short selling. With event study methodology and use of a control group for comparison, we find that stocks allowed for short selling tend to have worse performance than those not allowed for short selling. ...

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