BAFI Academic Seminar

Short-Selling Constraints and Supply Effects

The unique institutional characteristics of the Japanese stock market and the SEO process provide an ideal environment to examine a possible incidence of downward sloping demand curve. On the Japanese SEOs’ issue day, the supply of shares actually changes but no new information is revealed. The unique attributes allow us to examine the potential supply effect (1) for stocks with and without trading restrictions, (2) free of the effects of manipulative short sales, and also (3) free of information effects related to the pricing of the SEO. We find a permanent price pressure effect only for stocks with short-selling constraints.  This paper is co-authored with Hideaki Kiyoshi Kato, Nagoya University, Japan & Katsushi Suzuki, Hitotsubashi University, Japan.


Fee: [Yes/No/Varies]

Contact Information:
Tedda Nathan
Dept. Administrator
txn2@case.edu
216-368-2040 [Phone]
216-368-6249 [Fax]

Friday, Feb. 16, 2018 from 10:30 a.m. to noon
Peter B. Lewis Building, Room 05
11119 Bellflower Road
Cleveland, OH 44106-7235
United States
Speaker(s): Ajai Singh, U Central Florida
Ajai Singh paper 2

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