Short-selling ban and cross-sectoral contagion: evidence from the UK

The UK’s Financial Services Authority (FSA) introduced a ban on the short-selling of specified financial-sector stocks in September 2008. The regulator’s stated objectives were to protect market quality, stabilize the market for financial-sector stocks, and prevent cross-sectoral contagion. We analy...

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Main Authors:	Mohamad, Azhar, Jaafar, Aziz, Goddard, John
Format:	Conference or Workshop Item
Language:	English English English
Published:	2012
Subjects:	HG4501 Stocks, investment, speculation
Online Access:	http://irep.iium.edu.my/28464/ http://irep.iium.edu.my/28464/ http://irep.iium.edu.my/28464/1/Short_Selling_Ban_and_Cross_Sectoral_Contagion.pdf http://irep.iium.edu.my/28464/2/Azhar_MFA_New_Orleans_Acceptance_letter.pdf http://irep.iium.edu.my/28464/3/MFA_2012_Preliminary_Program_as_of_1-4-12-1.pdf

id	iium-28464
recordtype	eprints
spelling	iium-284642013-02-13T13:54:20Z http://irep.iium.edu.my/28464/ Short-selling ban and cross-sectoral contagion: evidence from the UK Mohamad, Azhar Jaafar, Aziz Goddard, John HG4501 Stocks, investment, speculation The UK’s Financial Services Authority (FSA) introduced a ban on the short-selling of specified financial-sector stocks in September 2008. The regulator’s stated objectives were to protect market quality, stabilize the market for financial-sector stocks, and prevent cross-sectoral contagion. We analyse the price, market quality and contagion effects following the imposition of the short-selling ban, and its removal in January 2009. We report evidence consistent with a short-lived overpricing (underpricing) effect immediately after the ban was imposed (lifted). There is evidence of deterioration in market quality while the ban was in force. There is evidence of cross-sectoral contagion from the financial sector to the telecommunication sector immediately prior to the imposition of the ban, but there is no contagion for seven other non-financial sectors. There is no evidence of contagion while the ban was in force. 2012-02-24 Conference or Workshop Item NonPeerReviewed application/pdf en http://irep.iium.edu.my/28464/1/Short_Selling_Ban_and_Cross_Sectoral_Contagion.pdf application/pdf en http://irep.iium.edu.my/28464/2/Azhar_MFA_New_Orleans_Acceptance_letter.pdf application/pdf en http://irep.iium.edu.my/28464/3/MFA_2012_Preliminary_Program_as_of_1-4-12-1.pdf Mohamad, Azhar and Jaafar, Aziz and Goddard, John (2012) Short-selling ban and cross-sectoral contagion: evidence from the UK. In: Sixty-First Annual Meeting of the Midwest Finance Association, 22 - 25 February 2012, New Orleans, USA. (Unpublished) http://www.midwestfinance.org/documents/MFA%202012%20Call%20for%20Papers.pdf
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English English English
topic	HG4501 Stocks, investment, speculation
spellingShingle	HG4501 Stocks, investment, speculation Mohamad, Azhar Jaafar, Aziz Goddard, John Short-selling ban and cross-sectoral contagion: evidence from the UK
description	The UK’s Financial Services Authority (FSA) introduced a ban on the short-selling of specified financial-sector stocks in September 2008. The regulator’s stated objectives were to protect market quality, stabilize the market for financial-sector stocks, and prevent cross-sectoral contagion. We analyse the price, market quality and contagion effects following the imposition of the short-selling ban, and its removal in January 2009. We report evidence consistent with a short-lived overpricing (underpricing) effect immediately after the ban was imposed (lifted). There is evidence of deterioration in market quality while the ban was in force. There is evidence of cross-sectoral contagion from the financial sector to the telecommunication sector immediately prior to the imposition of the ban, but there is no contagion for seven other non-financial sectors. There is no evidence of contagion while the ban was in force.
format	Conference or Workshop Item
author	Mohamad, Azhar Jaafar, Aziz Goddard, John
author_facet	Mohamad, Azhar Jaafar, Aziz Goddard, John
author_sort	Mohamad, Azhar
title	Short-selling ban and cross-sectoral contagion: evidence from the UK
title_short	Short-selling ban and cross-sectoral contagion: evidence from the UK
title_full	Short-selling ban and cross-sectoral contagion: evidence from the UK
title_fullStr	Short-selling ban and cross-sectoral contagion: evidence from the UK
title_full_unstemmed	Short-selling ban and cross-sectoral contagion: evidence from the UK
title_sort	short-selling ban and cross-sectoral contagion: evidence from the uk
publishDate	2012
url	http://irep.iium.edu.my/28464/ http://irep.iium.edu.my/28464/ http://irep.iium.edu.my/28464/1/Short_Selling_Ban_and_Cross_Sectoral_Contagion.pdf http://irep.iium.edu.my/28464/2/Azhar_MFA_New_Orleans_Acceptance_letter.pdf http://irep.iium.edu.my/28464/3/MFA_2012_Preliminary_Program_as_of_1-4-12-1.pdf
first_indexed	2023-09-18T20:41:58Z
last_indexed	2023-09-18T20:41:58Z
_version_	1777409425110204416

Short-selling ban and cross-sectoral contagion: evidence from the UK

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