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Type: Journal article
Title: The impact of short-selling pressure on corporate employee relations
Author: Brockman, P.
Luo, J.
Xu, L.
Citation: Journal of Corporate Finance, 2020; 64:1-21
Publisher: Elsevier
Issue Date: 2020
ISSN: 0929-1199
Statement of
Paul Brockman, Juan Luo, Limin Xu
Abstract: We show that randomly-selected Regulation SHO pilot firms respond to an increased threat of short selling by significantly improving their employee relations. Pilot firms enhance employee security to reduce the likelihood of employee-related negative publicity. The reduction of workplace concerns is most evident among pilot firms with higher degree of earnings manipulation, short interest potential, likelihood of labor disputes and employee whistle-blowing. Pilot firms experience better stock performance during the post Reg-SHO period after easing workplace concerns. Overall, our study provides novel evidence that the removal of short-selling constraints has a real effect on labor relations.
Keywords: Employee relations; Labor disputes; Short-selling; Regulation SHO
Description: Available online 20 June 2020
Rights: © 2020 Elsevier B.V. All rights reserved.
RMID: 0030084364
DOI: 10.1016/j.jcorpfin.2020.101677
Appears in Collections:Business School publications

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