Anmerkungen:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments April 2014 erstellt
Beschreibung:
We examine the effect of the short-selling ban implemented in 2011 on Spanish stocks on the level of risk in the banking sector. Before the ban, short positions are found to be positive and significantly related to the creditworthiness of medium-sized banks, less internationally diversified and more reliant on official support. We show that the ban helped stabilise the credit risk of medium-sized banks, especially of those more exposed to short-sellers' activity, but not that of large banks and non-financial firms. This stabilising effect came at the cost of a significantly sharp decline in liquidity, trading and price efficiency of medium-sized banks' stocks relative to the rest of the stocks