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dc.contributor.authorHuhtilainen M
dc.date.accessioned2017-12-18T08:09:25Z
dc.date.available2017-12-18T08:09:25Z
dc.date.issued2017
dc.identifier.urihttps://erepo.uef.fi/handle/123456789/5084
dc.description.abstractThis paper discusses the renewed short selling regulation (Regulation (EU) No 236/2012) in the European Union. The focus is on the provisions that deal with prohibiting short selling in exceptional market circumstances. The Regulation further enforces certain obligations to report and disclose short positions. It is concluded that banning short selling is not an effective tool to contain extreme price volatility. The difference-in-differences regression and repeated measures GLM were used to test whether short selling bans were successful in containing volatility of those Spanish and Italian stocks that were subject to two back-to-back prohibitions during the years 2011-2013. The results are consistent with the majority of previous research, suggesting that the effectiveness of short sale constraints in reducing volatility is limited at best. Furthermore, there are evidence of counterproductive effects: constraints on short selling may actually increase volatility as well as deteriorate liquidity. However, based on theory and previous studies, reporting and disclosure requirements shall be favored provided they improve market efficiency as well as supervisory work of regulatory bodies.en
dc.language.isoENen
dc.publisherEuropa Grandeen
dc.relation.ispartofseriesEuropean Journal of Government and Economicsen
dc.relation.urihttp://www.ejge.org/index.php/ejge/article/view/97/72en
dc.rightsCC BY http://creativecommons.org/licenses/by/4.0/en
dc.subjectShort sellingen
dc.subjectRegulationen
dc.subjectInterventionen
dc.subjectTreatment effecten
dc.titleThe short selling regulation in the European Union: Assessing the authorization granted for the European Securities and Markets Authority to prohibit short sellingen
dc.description.versionpublished versionen
dc.contributor.departmentDepartment of Business, activitiesen
uef.solecris.id49084313en
dc.type.publicationinfo:eu-repo/semantics/articleen
dc.rights.accessrights© Authorsen
dc.description.reviewstatuspeerRevieweden
dc.format.pagerange5-23en
dc.relation.issn2254-7088en
dc.relation.issue1en
dc.relation.volume6en
dc.rights.accesslevelopenAccessen
dc.type.okmA1en
dc.type.versioninfo:eu-repo/semantics/publishedVersionen
uef.solecris.openaccessOpen access -julkaisukanavassa ilmestynyt julkaisu


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