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A new version of  Supply side short-selling constraints: who is buying when shorts are selling is now up and available. Abstract:

The equity lending literature has assumed that equity loan supply is static due to institutional constraints. Instead, we show that reduced stock lending (both at the margin and in levels) causes increased stock loan fees and stock overpricing. We find the strongest effect among stocks with the highest disagreement, as suggested by theory. Investors buy and do not lend for two reasons. First, they prefer positive skewness: loan-supply-constrained stocks exhibit increased lottery-like return distributions. Second, loan supply restrictions cause short-term positive holding period returns, implicating them in stock overpricing.

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November 4th, 2017

Publication Update

May 10th, 2017

Forthcoming!

January 12th, 2017

New paper! The revealed preference of sophisticated investors with Marat Molyboga.

August 1st, 2016

New version of Supply side short-selling constraints!

July 28th, 2016

Phantom Liquidity paper getting some press

July 8th, 2016

Back in Nashville

June 13th, 2016

Back from Lisbon. To WFAs next week!

May 27th, 2016

Headed to Lisbon!

May 9th, 2016

Phantom liquidity paper updated and submitted.

May 9th, 2016

Accepted at the Northern Finance Assn meetings!