Foreigners’ Short Selling in the Korean Stock Market around the Financial Crisis
This paper investigates short selling behavior, particularly by foreign investors, during event days of non-normal times on an intraday basis in the Korean stock market around the global financial crisis. Although, in the several subsamples, we cannot exclude the predatory short-selling possibility,...
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| Format: | Article |
| Language: | English |
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Korea Institute for International Economic Policy
2023-06-01
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| Series: | East Asian Economic Review |
| Subjects: |
| _version_ | 1797784169493823488 |
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| author | Sang Buhm Hahn Sehoon Kwon Yeongseop Rhee |
| author_facet | Sang Buhm Hahn Sehoon Kwon Yeongseop Rhee |
| author_sort | Sang Buhm Hahn |
| collection | DOAJ |
| description | This paper investigates short selling behavior, particularly by foreign investors, during event days of non-normal times on an intraday basis in the Korean stock market around the global financial crisis. Although, in the several subsamples, we cannot exclude the predatory short-selling possibility, we did not find any conclusive evidence of abusive short selling behaviors in the overall intraday trading activities. While foreign investors demonstrate higher levels of participation in short-sale trading, their impact on price declines is not as pronounced compared to the effects of pure selling. Following the lift of the short-sale ban, foreign investors appear to engage in long selling trading more frequently, and their influence on price changes primarily stems from long selling rather than short selling compared to the past. |
| first_indexed | 2024-03-13T00:36:08Z |
| format | Article |
| id | doaj.art-c0bdc67ee45a44afbb80c1db84c3355f |
| institution | Directory Open Access Journal |
| issn | 2508-1640 2508-1667 |
| language | English |
| last_indexed | 2024-03-13T00:36:08Z |
| publishDate | 2023-06-01 |
| publisher | Korea Institute for International Economic Policy |
| record_format | Article |
| series | East Asian Economic Review |
| spelling | doaj.art-c0bdc67ee45a44afbb80c1db84c3355f2023-07-10T05:40:53ZengKorea Institute for International Economic PolicyEast Asian Economic Review2508-16402508-16672023-06-0127214517610.11644/KIEP.EAER.2023.27.2.421Foreigners’ Short Selling in the Korean Stock Market around the Financial CrisisSang Buhm Hahn0https://orcid.org/0000-0002-0669-3114Sehoon Kwon1https://orcid.org/0000-0002-9725-9486Yeongseop Rhee2https://orcid.org/0000-0003-1022-932XKyonggi UniversitySangmyung UniversitySeoul National UniversityThis paper investigates short selling behavior, particularly by foreign investors, during event days of non-normal times on an intraday basis in the Korean stock market around the global financial crisis. Although, in the several subsamples, we cannot exclude the predatory short-selling possibility, we did not find any conclusive evidence of abusive short selling behaviors in the overall intraday trading activities. While foreign investors demonstrate higher levels of participation in short-sale trading, their impact on price declines is not as pronounced compared to the effects of pure selling. Following the lift of the short-sale ban, foreign investors appear to engage in long selling trading more frequently, and their influence on price changes primarily stems from long selling rather than short selling compared to the past.short sellingfinancial crisisforeign investorsprice reversalsshort-sale ban |
| spellingShingle | Sang Buhm Hahn Sehoon Kwon Yeongseop Rhee Foreigners’ Short Selling in the Korean Stock Market around the Financial Crisis East Asian Economic Review short selling financial crisis foreign investors price reversals short-sale ban |
| title | Foreigners’ Short Selling in the Korean Stock Market around the Financial Crisis |
| title_full | Foreigners’ Short Selling in the Korean Stock Market around the Financial Crisis |
| title_fullStr | Foreigners’ Short Selling in the Korean Stock Market around the Financial Crisis |
| title_full_unstemmed | Foreigners’ Short Selling in the Korean Stock Market around the Financial Crisis |
| title_short | Foreigners’ Short Selling in the Korean Stock Market around the Financial Crisis |
| title_sort | foreigners short selling in the korean stock market around the financial crisis |
| topic | short selling financial crisis foreign investors price reversals short-sale ban |
| work_keys_str_mv | AT sangbuhmhahn foreignersshortsellinginthekoreanstockmarketaroundthefinancialcrisis AT sehoonkwon foreignersshortsellinginthekoreanstockmarketaroundthefinancialcrisis AT yeongseoprhee foreignersshortsellinginthekoreanstockmarketaroundthefinancialcrisis |