Arbeitspapier
On the importance of fiscal space: Evidence from short sellers during the COVID-19 pandemic
Using the exogenous shock of the COVID-19 pandemic, we study how informed market participants evaluate fiscal space. Short-selling activity shifted upon the onset of the pandemic towards companies with low financial flexibility only in countries with limited fiscal space. Among these companies, short sellers targeted especially those that generate their revenue mainly in the domestic market. These short sellers entered their positions before the market crash, generating thereby a significant abnormal return. These findings support the notion that short sellers bet on the inability of governments with budgetary constraints to provide sufficient stimulus to their economy in times of crises.
- ISBN
-
978-3-95729-837-9
- Sprache
-
Englisch
- Erschienen in
-
Series: Deutsche Bundesbank Discussion Paper ; No. 29/2021
- Klassifikation
-
Wirtschaft
Information and Market Efficiency; Event Studies; Insider Trading
Pension Funds; Non-bank Financial Institutions; Financial Instruments; Institutional Investors
Fiscal Policies and Behavior of Economic Agents: General
- Thema
-
COVID-19 pandemic
short selling
fiscal space
institutional investors
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Greppmair, Stefan
Jank, Stephan
Smajlbegovic, Esad
- Ereignis
-
Veröffentlichung
- (wer)
-
Deutsche Bundesbank
- (wo)
-
Frankfurt a. M.
- (wann)
-
2021
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:42 MEZ
Datenpartner
Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Greppmair, Stefan
- Jank, Stephan
- Smajlbegovic, Esad
- Deutsche Bundesbank
Entstanden
- 2021
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