Broker and Institutional Investor Short Selling
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Journal Article
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Wiley
Abstract
Brokers have access to order-flow data, which they can use to enhance their short-selling returns. However, New Zealand brokers also have a fiduciary duty to place their clients' interests before their own. We compare the short-selling returns and trading behaviours of brokers and institutional investors who predominantly focus on profit-making. Our results show no significant return difference between broker and institutional short sales and indicate that broker short sales are apparently to stabilise the market. Short selling is associated with improved market quality, and this improvement is more pronounced when brokers short sell more than institutional investors.Description
Keywords
38 Economics, 3502 Banking, Finance and Investment, 3801 Applied Economics, 35 Commerce, Management, Tourism and Services, 1402 Applied Economics, 1501 Accounting, Auditing and Accountability, 1502 Banking, Finance and Investment, Accounting, 3501 Accounting, auditing and accountability, 3502 Banking, finance and investment, 3801 Applied economics
Source
Accounting and Finance, ISSN: 0810-5391 (Print); 1467-629X (Online), Wiley. doi: 10.1111/acfi.13339
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© 2024 The Author(s). Accounting & Finance published by John Wiley & Sons Australia, Ltd on behalf of Accounting and Finance Association of Australia and New Zealand.
This is an open access article under the terms of the Creative Commons Attribution-NonCommercial-NoDerivs License, which permits use and distribution in any medium, provided the original work is properly cited, the use is non-commercial and no modifications or adaptations are made.