@Article{mfj:797,
title={Short-Sellers and Short Covering},
author={James Clunie and Peter Moles and Tatiana Pyatigorskaya},
journal={Multinational Finance Journal},
volume={13},
number={3/4},
pages={265--292},
year=2009,
publisher={Multinational Finance Society; Global Business Publications},
url={http://www.mfsociety.org/../modules/modDashboard/uploadFiles/journals/MJ~776~p16uel825l1gotk7t1s9t1eb51j9b4.pdf}
keywords={n/a},
abstract={This study fills an important gap in the literature on loss realization aversion. It shows how a ‘sophisticated’ sub-set of investors, namely short-sellers, react to losses. Using daily data on stock lending, we estimate the average price at which short positions were initiated, thus permitting a study of short-sellers’ responses to their own book losses. We find that short-sellers close their positions in response to losses and not simply in response to rising share prices. This is a key result and a distinction from findings in related research. We conclude that short-sellers do not exhibit an aversion to realizing losses, but instead accept their losses or ‘mistakes’ systematically..},
}