The Impact of Short Selling on Firms: An Empirical Literature Review
Received: 31 Mar 2020 / Revised: 16 Jun 2020 / Accepted: 24 Jun 2020 / Published: 13 Jul 2020
Abstract
This review surveys the existing empirical literature on the real effects of short selling on firms, addressing them through three main perspectives: corporate governance, financial decisions, and performance. The results of the (too) few empirical studies under scrutiny converge to a common rationale: a positive impact as a disciplinary mechanism on corporate governance and corporate investment policy and a positive impact on operating and corporate social responsibility (CSR) performance, even if some results are still puzzling. It appears that further investigations are necessary and should test the consequences of short selling on firms from a broader and more systematic perspective, with different theoretical and methodological approaches.
Keywords: short selling; real effects; corporate governance; investment; performance
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This is an open access article distributed under the Creative Commons Attribution
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provided the original work is properly cited. (CC BY 4.0).
CITE
Caby, J. The Impact of Short Selling on Firms: An Empirical Literature Review. JBAFP 2020, 2, 19.
Caby J. The Impact of Short Selling on Firms: An Empirical Literature Review. Journal of Business Accounting and Finance Perspectives. 2020; 2(3):19.
Caby, Jérôme. 2020. "The Impact of Short Selling on Firms: An Empirical Literature Review." JBAFP 2, no. 3: 19.
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