Arbeitspapier
Short sale constraints, divergence of opinion and asset values: Evidence from the laboratory
The overvaluation hypothesis (Miller 1977) predicts that a) stocks are overvalued in the presence of short selling restrictions and that b) the overvaluation increases in the degree of divergence of opinion. We design an experiment that allows us to test these predictions in the laboratory. The results indicate that prices are higher with short selling constraints, but the overvaluation does not increase in the degree of divergence of opinion. We further find that trading volume is lower and bid-ask spreads are higher when short sale restrictions are imposed.
- Language
-
Englisch
- Bibliographic citation
-
Series: CFS Working Paper ; No. 2011/05
- Classification
-
Wirtschaft
Design of Experiments: Laboratory, Group Behavior
Information and Market Efficiency; Event Studies; Insider Trading
- Subject
-
Overvaluation Hypothesis
Short Selling Constraints
Divergence of Opinion
Börsenkurs
Leerverkauf
Anlageverhalten
Meinung
Test
- Event
-
Geistige Schöpfung
- (who)
-
Fellner, Gerline
Theissen, Erik
- Event
-
Veröffentlichung
- (who)
-
Goethe University Frankfurt, Center for Financial Studies (CFS)
- (where)
-
Frankfurt a. M.
- (when)
-
2011
- Handle
- URN
-
urn:nbn:de:hebis:30-91482
- Last update
-
10.03.2025, 11:44 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Fellner, Gerline
- Theissen, Erik
- Goethe University Frankfurt, Center for Financial Studies (CFS)
Time of origin
- 2011
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Informational asymmetries in laboratory asset markets with state-dependent fundamentals
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