Broker and institutional investor short selling
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Date
2024-09-20
Open Access Location
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
John Wiley and Sons Australia, Ltd on behalf of Accounting and Finance Association of Australia and New Zealand
Rights
(c) The author/s
CC BY-NC-ND 4.0
CC BY-NC-ND 4.0
Abstract
Brokers have access to order-flow data, which they can use to enhance their short-selling returns. However, New Zealand brokers also have a fiduciary duty to place their clients' interests before their own. We compare the short-selling returns and trading behaviours of brokers and institutional investors who predominantly focus on profit-making. Our results show no significant return difference between broker and institutional short sales and indicate that broker short sales are apparently to stabilise the market. Short selling is associated with improved market quality, and this improvement is more pronounced when brokers short sell more than institutional investors.
Description
Keywords
Brokers, institutional investor, short selling
Citation
Marshall BR, Nguyen NH, Visaltanachoti N, Zhu J. (2024). Broker and institutional investor short selling. Accounting and Finance. Early View. (pp. 1-25).