The short-selling skill of institutions and individuals

B-Tier
Journal: Journal of Banking & Finance
Year: 2019
Volume: 101
Issue: C
Pages: 77-91

Score contribution per author:

0.673 = (α=2.02 / 3 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Using market-wide data from the Brazilian stock lending market at the deal level, we find strong evidence of short-selling skill for institutions and individuals. Skilled short-sellers present out-of-sample performance persistence. Exploring the granularity of our dataset, we find that skilled short-sellers do not display the disposition effect, are more likely to pick value, liquid, high-volatility, and losing stocks, and to initiate a short position before earnings announcements and around sell recommendations.

Technical Details

RePEc Handle
repec:eee:jbfina:v:101:y:2019:i:c:p:77-91
Journal Field
Finance
Author Count
3
Added to Database
2026-01-25