An Investigation of the Informational Role of Short Interest in the Nasdaq Market

By Hemang Desai, K. Ramesh, S. Thiagarajan, B. Balachandran, L. Bamber, Venkat R. Eleswarapu, Larry Glosten, Richard Green ~the Editor, Lex C. Huberts, Ravi Jagannathan and 19 more. 2002

428 citations recorded by the source corpus.

Subfields: Accounting, Finance

View Paper: https://www.semanticscholar.org/paper/528244083809655353e71263e3920ed66e68185f

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Citations in the corpus

Supply and Demand Shifts in the Shorting Market (2007, neutral): “Many of the early empirical studies (see Desai et al. (2002) for a summary) fail to find a consistent relation between short interest and abnormal returns. This could be due to the problematic nature of short interest. For example, a low level of short interest may not indicate low shorting demand: ”
Short Interest, Institutional Ownership, and Stock Returns (2005, positive): “The first subperiod is the subperiod that Desai et al. (2002) analyze.”
Do Short Sellers Front-Run Insider Sales? (2013, positive): “A number of studies suggest that short sellers are informed traders, by showing that short sales predict returns (Desai et al. 2002; Asquith et al. 2005; Boehmer et al. 2008; Diether et al. 2009).”
Competition of the Informed: Does the Presence of Short Sellers Affect Insider Selling? (2015, positive): “A number of studies demonstrate that short sellers possess superior information: they are able to identify overvalued stocks (e.g., Desai et al., 2002; Cohen, et al., 2007; Boehmer et al., 2008; Diether et al., 2009; Boehmer, et al., 2010) or are particularly good at processing information (e.g.,…”
In Short Supply: Short Sellers and Stock Returns (2015, positive): “Prior studies that examine short-selling at the individual stock level have consistently demonstrated that, as a group, short-sellers are sophisticated investors with superior information processing capabilities (e.g., Dechow et al. 2001; Desai et al. 2002; Drake et al. 2011; and Engelberg et al. 20”
Short interest and stock price crash risk (2015, positive): “Asquith and Meulbroek (1996) and Desai et al. (2002) find significant, negative abnormal return for stocks with high short interest.”
Short Selling and the Price Discovery Process (2013, positive): “We complement earlier work by Dechow et al. (2001), Desai et al. (2002), Hirshleifer, Teoh, and Yu (2011), and others that examines the relation between monthly short interest and variables related to firm fundamentals.”
Do Short Sellers Target Firms with Poor Earnings Quality? Evidence from Earnings Restatements (2006, positive): “Analyzing performance-related delisting offers an alternate approach to studying the relation between shorting activity and subsequent performance (Desai et al. 2002).”
Short-Sale Constraints, Differences of Opinion, and Overvaluation (2006, neutral): “See Footnote 7 of Desai et al. (2002). interest and subsequent returns.”