Short selling plays a unique role in financial markets. Short selling's institutional structure is
distinct from other types of trades, and short sellers have been shown to be more informed …

ABSTRACT I describe asset price dynamics caused by the slow movement of investment
capital to trading opportunities. The pattern of price responses to supply or demand shocks …

This paper investigates voting preferences of institutional investors using the unique setting
of the securities lending market. Investors restrict lendable supply and/or recall loaned …

We examine the economic determinants of short-sale supply, and its consequences for
future stock returns. Lendable supply increases with expected borrowing costs and …

We review the academic findings from psychology and economics on disagreement—
specifically, the effect of disagreement on asset prices. We discuss measurement of …

We examine how institutional ownership structure gives rise to limits to arbitrage through its
impact on short-sale constraints. Stocks with lower, more concentrated, short-term, and less …

Motivated by the theory of demand-based option pricing in imperfect markets, we examine
the relation between short-sale constraints and equity option returns, conditional on the level …

We document the historically bad performance of shorting strategies in late 2020 and early
2021. Short sellers started retreating several weeks before the dramatic growth in the online …

Short selling efficiency (SSE), measured each month by the slope coefficient of cross-
sectionally regressing abnormal short interest on a mispricing score, significantly and …

This monograph is a compact introduction to empirical research on market efficiency,
behavioral finance, and fundamental analysis. The first section reviews the evolution of …