Short-Selling Bans and the Global Financial Crisis: Are they Interconnected?
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.
Keywords
Short-selling bans; spillovers; stock markets; dynamic conditional correlations
Cite as
Bohl, M., Essid, B., & Siklos, P. (2018). Short-Selling Bans and the Global Financial Crisis: Are they Interconnected?. Applied Economics Quarterly, 64(2), 159–177.Details
Publication type
Research article (journal)
Peer reviewed
Yes
Publication status
Published
Year
2018
Journal
Applied Economics Quarterly
Volume
64
Issue
2
Start page
159
End page
177
Language
English
ISSN
1611-6607
DOI