Publication

This paper examines the impact of bans on short-selling that were imposed around the world in 2007 and whether there were spillover effects over and above the domestic impact from the imposition of such bans. In general, the authors find that the bans were unsuccessful, at least insofar as they did not take into account the global component a short-selling ban might have. However, they also suggest that there may be evidence that the bans stemmed the further deterioration in stock prices that policy makers sought to avoid through their implementation.