Out of Sync: Dispersed Short Selling and the Correction of Mispricing

Simple item page
dc.coverageDOI: 10.1017/S0022109022001089
dc.creatorGargano, Antonio
dc.creatorSotes-Paladino, Juan
dc.creatorVerwijmeren, Patrick
dc.date2022
dc.date.accessioned05-01-2026 18:13
dc.date.available05-01-2026 18:13
dc.description<p>How synchronized are short sellers? We examine a unique data set on the distribution of profits across a stock’s short sellers and find evidence of substantial dispersion in the initiation of their positions. Consistent with this dispersion reflecting “synchronization risk,” that is, uncertainty among short sellers about when others will short sell, more dispersed short selling signals i) greater stock overpricing and ii) longer delays in overpricing correction. These effects are prevalent even among stocks facing low short-selling costs or other explicit constraints. Overall, our findings provide novel cross-sectional evidence of synchronization problems among short sellers and their pricing implications.</p>eng
dc.identifierhttps://investigadores.uandes.cl/en/publications/aff1b2d4-3ec2-4972-81b8-c06a7ccdc5f5
dc.languageeng
dc.rightsinfo:eu-repo/semantics/openAccess
dc.sourcevol.58 (2022) nr.8 p.3482-3520
dc.titleOut of Sync: Dispersed Short Selling and the Correction of Mispricingeng
dc.typeArticleeng
dc.typeArtículospa
Files
Collections
Facultad de Ciencias Económicas y Empresariales