What determines the level of short-selling activity?

Financial Management (Financial Management Association), Winter, 2007 by Hung Wan Kot

This paper is a modified version of a chapter of my doctoral thesis completed at HKUST. Special thanks to Kalok Chan, my supervisor. Detailed comments from anonymous referees and Alexander Bulter substantially improved the quality of the paper and are gratefully acknowledged. I thank Yeung Lewis Chan, Eric Chang, William Christie (Editor), Lewis H.K. Tam, K.C. John Wei, Hong Yah, and participants of the finance seminar at HKUST, Hong Kong Baptist University, International University of Japan, University of Waikato, Renmin University of China, 2003 FMA Annual Meeting in Denver, and Asian FA/TFA/FMA 2003-2004 Finance Conference at Taipei for helpful comments and suggestions. I thank the NYSE and the Nasdaq for providing short-interest data, Harry K. M. Leung for computing assistance, and Sandra Sizer for editorial assistance. I acknowledge the financial support from the Contestable Research Funds of the University of Waikato Management School. All errors are my own.

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