... against increased short selling and that institutional investors trade in parallel with the repurchasing firm. Originality/value Results suggest that firms disagree with short sellers’ intrinsic valuation of the firm, which is consistent with findings of recent studies such as Muzere (2019...

... to study the relation between short selling and the proportion of total trading volume executed in dark pools. We find that the dark pool volume as a percentage of total trading volume is positively correlated with the ratio of short interest to total trading volume, which is commonly referred to as days...

... in share price prior to merger announcements, and the premiums paid are also significantly predicted by short interest levels. Research limitations/implications Short selling activity can be motivated for reasons other than overvaluation, and many short positions can be held for long periods before...