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Show Us Your Shorts?

56 Pages Posted: 1 Oct 2016  

Bige Kahraman

University of Oxford - Said Business School; Centre for Economic Policy Research (CEPR)

Salil Pachare

U.S. Securities and Exchange Commission

Multiple version iconThere are 2 versions of this paper

Date Written: September 30, 2016


What is the impact of higher publicity in the shorting market on informational efficiency? To answer this, we exploit amendments to rules in the U.S. markets which increased the frequency of public dissemination of short-sales from once-a-month to twice-a-month. Theoretically, higher publicity can improve or deteriorate informational efficiency. We find that, with more frequent disclosure, short-sellers’ information is incorporated into prices faster, improving informational efficiency. Efficiency gains are pronounced for stocks with negative information and poor informational environments. Consistent with our main findings, we document important market reactions to short-sales announcements, and reductions in short-sellers’ horizon risk and holding periods.

Keywords: Shorting Market; Disclosure; Informational Efficiency

Suggested Citation

Kahraman, Bige and Pachare, Salil, Show Us Your Shorts? (September 30, 2016). Available at SSRN: or

Bige Kahraman (Contact Author)

University of Oxford - Said Business School ( email )

Park End Street
Oxford, OX1 1HP
Great Britain

Centre for Economic Policy Research (CEPR) ( email )

77 Bastwick Street
London, EC1V 3PZ
United Kingdom

Salil Pachare

U.S. Securities and Exchange Commission ( email )

Division of Economic and Risk Analysis
100 F Street, N.E.
Washington, DC DC 20549
United States

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