The determinants of short selling: evidence from the Hong Kong equity market: Accounting and Finance

摘要: While most financial regulators agree that short sellers have an important role to play in ensuring efficiently functioning market, it is interesting note many did not hesitate ban selling during the recent crisis. This apparent contradiction likely stems from a lack of understanding about what motivates trading. In this paper, we focus on determinants ‘normal’ trading Hong Kong stock market. We find dividend payments, company fundamentals, risk, option trading, interest rate spread and past returns are all significant selling.