An Empirical Examination of the Relationship between Naked Shorting and Share Prices Around the Announcement of a Firm’s Need for External Capital
Oakland University - School of Business Administration
Oakland University - Department of Accounting and Finance
Yun Ellen Zhu
June 1, 2010
This research finds empirical evidence that naked short sales contribute to the ability of investors to manipulatively short down the value of firms in need of external capital. The findings are also consistent with a hypothesis that the announcement effect of a new stock issue is merely a proxy for the value dilution of shorting shares of companies needing to raise new equity.
Number of Pages in PDF File: 44working papers series
Date posted: April 5, 2010 ; Last revised: September 1, 2010
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