Do short sellers exploit industry information

摘要: Abstract This study provides new evidence about short sellers' trading strategies by showing that sellers exploit firm information in combination with industry their trades. In industries the highest aggregate shorted values, most-shorted stocks earn 1.535% lower abnormal returns than other highly less over next six months. These results are likely driven sellers’ preference for complex profit potential. We also show value at level is able to predict important shifts, such as declines sales and increased competition. Overall, our suggest help reduce complexity improve economic efficiency level.