Please use this identifier to cite or link to this item:
http://hdl.handle.net/10397/89228
| Title: | Short selling threat and real activity manipulation : evidence from a natural experiment | Authors: | Chen, HA Wu, Q |
Issue Date: | Mar-2021 | Source: | Advances in accounting, Mar. 2021, v. 52, 100514 | Abstract: | In this paper, we investigate whether and how short selling threat affects real activity manipulation. Using a regulatory experiment (Regulation SHO) that removes short selling restrictions on randomly selected pilot firms, we find that real activity manipulation is significantly reduced for pilot firms in response to increased short selling threat during the experiment period. The reduction effect is stronger for pilot firms with a transparent financial reporting strategy, a high level of negative financial reporting sentiment, and bad news. Our finding confirms short sellers' monitoring effect on opportunistic behavior, even for real activity manipulation that is difficult to detect. | Keywords: | Real earnings management Regulation sho Short selling threat |
Publisher: | Elsevier | Journal: | Advances in accounting | ISSN: | 0882-6110 | DOI: | 10.1016/j.adiac.2021.100514 | Rights: | © 2021 Elsevier Ltd. All rights reserved. © 2021. This manuscript version is made available under the CC-BY-NC-ND 4.0 license http://creativecommons.org/licenses/by-nc-nd/4.0/. The following publication Chen, H., & Wu, Q. (2021). Short selling threat and real activity manipulation: Evidence from a natural experiment. Advances in Accounting, 52, 100514 is available at https://dx.doi.org/10.1016/j.adiac.2021.100514. |
| Appears in Collections: | Journal/Magazine Article |
Files in This Item:
| File | Description | Size | Format | |
|---|---|---|---|---|
| Chen_Short_Selling_Threat.pdf | Pre-Published version | 1.25 MB | Adobe PDF | View/Open |
Access
View full-text via PolyU eLinks 
Page views
53
Last Week
1
1
Last month
Citations as of Nov 22, 2023
Downloads
6
Citations as of Nov 22, 2023
SCOPUSTM
Citations
4
Citations as of Dec 1, 2023
WEB OF SCIENCETM
Citations
2
Citations as of Nov 30, 2023
Google ScholarTM
Check
Altmetric
Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.