Shareholder litigation and short selling ahead of private equity placements

被引：1

作者：

Bayar, Onur ^{[1
]}

Liu, Yini ^{[2
,4
]}

Mao, Juan ^{[3
]}

机构：

[1] Univ Texas San Antonio, San Antonio, TX USA

[2] Univ Western Ontario, London, ON, Canada

[3] Univ Texas San Antonio, San Antonio, TX USA

[4] Univ Western Ontario, London, ON N6A 3K7, Canada

来源：

FINANCIAL REVIEW | 2023年 / 58卷 / 04期

关键词：

law and finance; private investment in public equity (PIPE); securities class action litigation; short selling; SHORT SELLERS; INFORMATION-CONTENT; FIRMS; INVESTORS; QUALITY; NEWS;

D O I：

10.1111/fire.12347

中图分类号：

F8 [财政、金融];

学科分类号：

0202 ;

摘要：

We examine the impact of shareholder litigation on short selling ahead of private investments in public equity (PIPEs). We find that PIPE issuers that incurred securities class action lawsuits prior to the PIPE are shorted more heavily ahead of the PIPE issue. The case status at the PIPE date, the severity of the lawsuit, and the timing of the private placement after the litigation event also affect the extent of short selling activity ahead of PIPEs. Consistent with hedging incentives, the effects of prior shareholder litigation on short selling are more pronounced in PIPEs where lead investors are hedge funds and in traditional PIPEs.

引用

页码：833 / 858

页数：26

共 40 条

[1] Short interest, institutional ownership, and stock returns [J].