Do Short-Selling Prophets Currently Profit from Short Selling Around Earnings Announcements?

2010 ◽  
Author(s):  
Benjamin M. Blau ◽  
J. Michael Michael Pinegar
Keyword(s):  
Earnings Announcements ◽  
Short Selling

Short-Selling and Information Arrival around Earnings Announcements: Evidence from Regulation SHO

2021 ◽  
Author(s):  
Greg Clinch ◽  
Wei Li
Keyword(s):  
Stock Prices ◽  
Earnings Announcements ◽  
Public Information ◽  
Short Selling ◽  
Price Informativeness ◽  
The Public ◽  
Short Sellers ◽  
Information Release ◽  
Negative News ◽  
Shed Light

Short sellers assist in impounding negative news more quickly into stock prices and improve price informativeness. However, there is a lack of consistent evidence about whether short sellers trade predominantly in anticipation of, or in response to, a public information release. To shed light on this question, we exploit Reg SHO, which reduced the constraints faced by short sellers for a subsample of U.S. firms, to examine price informativeness before, during and after earnings announcements. We show that relative to control firms, pilot firms have greater (less) price informativeness before (during) earnings announcements, suggesting that short sellers trade in anticipation of public earnings news, rather than in response to the public news.

Short-Selling Prior to Earnings Announcements

2004 ◽  
Vol 59 (4) ◽  
pp. 1845-1876 ◽  
Author(s):  
Stephen E. Christophe ◽  
Michael G. Ferri ◽  
James J. Angel
Keyword(s):  
Earnings Announcements ◽  
Short Selling

Don't Sell Short Selling Short

CFA Magazine ◽  
2008 ◽  
Vol 19 (6) ◽  
pp. 14-14
Author(s):  
James Allen
Keyword(s):  
Short Selling
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