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Jani Saastamoinen and Niko Suhonen
''Were the European short selling bans of 2011 effective?''
( 2013, Vol. 33 No.3 )
Regulators in Belgium, France, Italy and Spain issued a short sales ban on financial stocks to contain volatility in August 2011. This paper uses a quasi-experimental approach to assess the ban's effectiveness. Control groups in the study are the ADRs of the banned financial stocks and their European peers. Using differences-in-differences and differences-in-differences-in-differences methodologies to measure differences in volatility, our results suggest that the ban was ineffective in containing volatility.
Keywords: Short selling restrictions, financial markets regulation, volatility, quasi-experiment, differences-in-differences estimation
G2 - Financial Institutions and Services: General
Manuscript Received : Mar 13 2013 Manuscript Accepted : Jul 16 2013

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