Skip to main content

Main menu

  • Home
  • Current Issue
  • Past Issues
  • Videos
  • Submit an article
  • More
    • About JOI
    • Editorial Board
    • Published Ahead of Print (PAP)
  • IPR Logo
  • About Us
  • Journals
  • Publish
  • Advertise
  • Videos
  • Webinars
  • More
    • Awards
    • Article Licensing
    • Academic Use
  • Follow IIJ on LinkedIn
  • Follow IIJ on Twitter

User menu

  • Sample our Content
  • Request a Demo
  • Log in

Search

  • ADVANCED SEARCH: Discover more content by journal, author or time frame
The Journal of Investing
  • IPR Logo
  • About Us
  • Journals
  • Publish
  • Advertise
  • Videos
  • Webinars
  • More
    • Awards
    • Article Licensing
    • Academic Use
  • Sample our Content
  • Request a Demo
  • Log in
The Journal of Investing

The Journal of Investing

ADVANCED SEARCH: Discover more content by journal, author or time frame

  • Home
  • Current Issue
  • Past Issues
  • Videos
  • Submit an article
  • More
    • About JOI
    • Editorial Board
    • Published Ahead of Print (PAP)
  • Follow IIJ on LinkedIn
  • Follow IIJ on Twitter
Article

Determinants of Short Interest Trading

Harlan Platt and Langxuan Yin
The Journal of Investing Winter 2016, 25 (4) 79-86; DOI: https://doi.org/10.3905/joi.2016.25.4.079
Harlan Platt
is a professor at Northeastern University’s College of Business Administration in Boston, MA.
  • Find this author on Google Scholar
  • Find this author on PubMed
  • Search for this author on this site
  • For correspondence: h.platt@neu.edu
Langxuan Yin
is a software engineer at MediaMath in New York, NY.
  • Find this author on Google Scholar
  • Find this author on PubMed
  • Search for this author on this site
  • For correspondence: omnific9@gmail.com
  • Article
  • Info & Metrics
  • PDF (Subscribers Only)
Loading

Click to login and read the full article.

Don’t have access? Click here to request a demo 

Alternatively, Call a member of the team to discuss membership options
US and Overseas: +1 646-931-9045
UK: 0207 139 1600

Abstract

Short selling is an investing strategy growing in importance, but with detractors who fear that the strategy can disrupt markets. Despite the volume of research on the effects of short selling, very little work has sought to understand the factors that determine the amount of short selling. This article explores which factors best explain the amount of shorting activity. The authors introduce a new variable that measures the relative price change in a company’s equity. Using NASDAQ company level data for the period from 2007 to 2013, they test the importance of volume, percentage price change, and relative price change to explain the number of shares shorted. All three variables are significant determinants of shorting activity. A large enough increase in industry prices may negate the effect of the increase in a company’s own share price on short-selling activities. If the average industry price change is larger than the change in the company’s share price, short sellers are less attracted to the company. Trifurcation (into high, medium, and low values) of the three primary independent variables yielded additional information on their effects on shorting activities. The authors find size-related monotonic relationships between two of their three primary variables and short selling—volume compared with shares outstanding and percentage price change. Relative price change does not support a monotonic relationship, but the differences between the subcategories are small. They also test the importance on short-selling activities of the rate of change in the overall NASDAQ market. High and low rates of change in overall NASDAQ prices do not affect short selling, but the middle range with a flat market reveals an increase in short selling. Flat markets appear to be the short-sellers’ sweet spot.

  • © 2016 Pageant Media Ltd
View Full Text

Don’t have access? Click here to request a demo

Alternatively, Call a member of the team to discuss membership options

US and Overseas: +1 646-931-9045

UK: 0207 139 1600

Log in using your username and password

Forgot your user name or password?
PreviousNext
Back to top

Explore our content to discover more relevant research

  • By topic
  • Across journals
  • From the experts
  • Monthly highlights
  • Special collections

In this issue

The Journal of Investing: 25 (4)
The Journal of Investing
Vol. 25, Issue 4
Winter 2016
  • Table of Contents
  • Index by author
Print
Download PDF
Article Alerts
Sign In to Email Alerts with your Email Address
Email Article

Thank you for your interest in spreading the word on The Journal of Investing.

NOTE: We only request your email address so that the person you are recommending the page to knows that you wanted them to see it, and that it is not junk mail. We do not capture any email address.

Enter multiple addresses on separate lines or separate them with commas.
Determinants of Short Interest Trading
(Your Name) has sent you a message from The Journal of Investing
(Your Name) thought you would like to see the The Journal of Investing web site.
CAPTCHA
This question is for testing whether or not you are a human visitor and to prevent automated spam submissions.
Citation Tools
Determinants of Short Interest Trading
Harlan Platt, Langxuan Yin
The Journal of Investing Nov 2016, 25 (4) 79-86; DOI: 10.3905/joi.2016.25.4.079

Citation Manager Formats

  • BibTeX
  • Bookends
  • EasyBib
  • EndNote (tagged)
  • EndNote 8 (xml)
  • Medlars
  • Mendeley
  • Papers
  • RefWorks Tagged
  • Ref Manager
  • RIS
  • Zotero
Save To My Folders
Share
Determinants of Short Interest Trading
Harlan Platt, Langxuan Yin
The Journal of Investing Nov 2016, 25 (4) 79-86; DOI: 10.3905/joi.2016.25.4.079
del.icio.us logo Digg logo Reddit logo Twitter logo CiteULike logo Facebook logo Google logo LinkedIn logo Mendeley logo
Tweet Widget Facebook Like LinkedIn logo

Jump to section

  • Article
    • Abstract
    • LITERATURE
    • MOTIVATION
    • DATA
    • EMPIRICAL RESULTS
    • RESULTS
    • ADDITIONAL ANALYSES
    • CONCLUSION
    • ENDNOTE
    • REFERENCES
  • Info & Metrics
  • PDF (Subscribers Only)
  • PDF (Subscribers Only)

Similar Articles

Cited By...

  • No citing articles found.
  • Google Scholar

More in this TOC Section

  • Editor’s Letter
  • COMMENTARY: Last Page
  • Editor’s Letter
Show more Article
LONDON
One London Wall, London, EC2Y 5EA
United Kingdom
+44 207 139 1600
 
NEW YORK
41 Madison Avenue, New York, NY 10010
USA
+1 646 931 9045
pm-research@pageantmedia.com
 

Stay Connected

  • Follow IIJ on LinkedIn
  • Follow IIJ on Twitter

MORE FROM PMR

  • Home
  • Awards
  • Investment Guides
  • Videos
  • About PMR

INFORMATION FOR

  • Academics
  • Agents
  • Authors
  • Content Usage Terms

GET INVOLVED

  • Advertise
  • Publish
  • Article Licensing
  • Contact Us
  • Subscribe Now
  • Log In
  • Update your profile
  • Give us your feedback

© 2021 Pageant Media Ltd | All Rights Reserved | ISSN: 1068-0896 | E-ISSN: 2168-8613

  • Site Map
  • Terms & Conditions
  • Cookies
  • Privacy Policy