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
Published:	2014
Subjects:	HG4501 Stocks, investment, speculation
Online Access:	http://irep.iium.edu.my/37106/ http://irep.iium.edu.my/37106/ http://irep.iium.edu.my/37106/1/bafa_contagion__LSE_2014.pdf http://irep.iium.edu.my/37106/6/azhar.pdf

id	iium-37106
recordtype	eprints
spelling	iium-371062015-01-08T10:44:10Z http://irep.iium.edu.my/37106/ 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. 2014 Conference or Workshop Item NonPeerReviewed application/pdf en http://irep.iium.edu.my/37106/1/bafa_contagion__LSE_2014.pdf application/pdf en http://irep.iium.edu.my/37106/6/azhar.pdf Mohamad, Azhar and Jaafar , Aziz and Goddard, John (2014) Short-selling ban and cross-sectoral contagion: evidence from the UK. In: BAFA 2014 Annual Conference, 14-16 April 2014, London . (Unpublished) http://bafa.ac.uk/assets/files/Conference/Abstracts%20-%20Delegate%20Pack.pdf
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	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	2014
url	http://irep.iium.edu.my/37106/ http://irep.iium.edu.my/37106/ http://irep.iium.edu.my/37106/1/bafa_contagion__LSE_2014.pdf http://irep.iium.edu.my/37106/6/azhar.pdf
first_indexed	2023-09-18T20:53:12Z
last_indexed	2023-09-18T20:53:12Z
_version_	1777410132338016256

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

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