Short-Selling Bans and the Global Financial Crisis: Are They Interconnected?
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Short-Selling Bans and the Global Financial Crisis: Are They Interconnected?
Bohl, Martin T. | Essid, Badye | Siklos, Pierre L.
Applied Economics Quarterly, Vol. 64 (2018), Iss. 2 : pp. 159–177
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Bohl, Martin T., Westfälische Wilhelms-University, Münster, Germany.
Essid, Badye, Autorité des marchés financiers, Montréal, QC, Canada.
Siklos, Pierre L., Wilfrid Laurier University and Balsillie School of International Affairs, Waterloo, ON, Canada.
Abstract
Abstract
This paper begins with the observation that short-selling bans spread globally in 2008. We find some evidence that the bans were unsuccessful at least insofar as they did not take into account the global component a short-selling ban which reduced equity returns in about a third of the 17 countries sampled, most notably in some of the major advanced economies. In the individual countries we examine, the bans had relatively little impact. Our results are suggestive as evidence that the bans stemmed further deterioration in stock prices that policy makers sought to avoid, at least in a few economies.
JEL classifications: G10, G12
Keywords: Short-selling bans, spillovers, stock markets, dynamic conditional correlations
Table of Contents
| Section Title | Page | Action | Price |
|---|---|---|---|
| Martin T. Bohl / Badye Essid / Pierre L. Siklos: Short-Selling Bans and the Global Financial Crisis: Are They Interconnected? | 1 | ||
| Abstract | 1 | ||
| 1. Introduction | 1 | ||
| 2. Short-Selling Bans and Stock Market Performance | 4 | ||
| 3. Data | 7 | ||
| 4. Methodology | 7 | ||
| 5. Empirical Results | 9 | ||
| 6. Conclusions | 1 | ||
| References | 1 |