2/9/2022 — We document that there is commonality in the loan fees that short sellers pay, and the common component of loan fees explains a significant amount of loan fee variation. While the top principal component of stock returns only explains 28.3% of their variation, we find that the top principal component of loan fees explains 45.6% of their variation.

• KEYWORD(S):
• finance

2/2/2023 — Regulating short selling is difficult and controversial. We review the academic literature on short selling regulation and provide insights for future policymakers and academics. We organize the complex history of short selling regulation into three areas: disclosure requirements, securities lending restrictions, and trading restrictions. We identify, analyze and discuss 45 distinct regulations promulgated during the period 1896 through 2021, primarily by reviewing the academic literature associated with each regulation, including a discussion of the data sources employed. In so doing, we provide several insights regarding the effectiveness of regulatory approaches as well as the wider impact on markets.

• KEYWORD(S):
• finance

9/20/2023 — We study the performance and information acquisition behavior of mutual funds for both their long and short positions. We show that managers acquire relatively more information about their shorts because the benefit of acquiring information about shorts is larger.

• KEYWORD(S):
• finance