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Do Bears Prefer The Weak And The Downtrodden? The Effects Of The 52-Week Low And Financial Strength On Short-Seller Behavior, Christopher Alan Miller
Do Bears Prefer The Weak And The Downtrodden? The Effects Of The 52-Week Low And Financial Strength On Short-Seller Behavior, Christopher Alan Miller
Electronic Theses and Dissertations
This dissertation investigates the effects of a company’s financial strength on short-seller behavior around a non-information-producing event. The distance of a stock price to its 52-week high or low does not provide fundamental information, but the price extremes serve as salient price points upon which investors anchor their expectations of future stock performance. Using a large sample of daily short sales data, I investigated the effects of both the proximity to the 52-week low and the financial strength of the underlying company on short-seller behavior. I found that short-selling volume increases as the price nears its 52-week low and that …