Full metadata record
DC Field | Value | Language |
---|---|---|
dc.contributor.author | Kranz, Sebastian | - |
dc.contributor.author | Löffler, Gunter | - |
dc.contributor.author | Posch, Peter N. | - |
dc.date.accessioned | 2017-12-04T13:50:38Z | - |
dc.date.available | 2017-12-04T13:50:38Z | - |
dc.date.issued | 2017 | - |
dc.identifier.uri | http://hdl.handle.net/2003/36232 | - |
dc.identifier.uri | http://dx.doi.org/10.17877/DE290R-18246 | - |
dc.description.abstract | This paper extends the literature on predatory short selling and bailouts through a joint analysis of the two. We consider a model with informed short sales, as well as uninformed predatory short sales, which can trigger the inefficient liquidation of a firm. We obtain several novel results: A government commitment to bail out insolvent firms with positive probability can increase welfare because it selectively deters predatory short selling without hampering desirable informed short sales. Contrasting a common view, bailouts can be optimal ex ante but undesirable ex post. Furthermore, bailouts in our model are a better policy tool than short selling restrictions. Welfare gains from the bailout policy are unevenly distributed: shareholders gain while taxpayers lose. Bailout taxes allow ex-ante Pareto improvements. | en |
dc.language.iso | en | de |
dc.relation.ispartofseries | Discussion Paper / SFB823;23/2017 | - |
dc.subject | government bailouts | en |
dc.subject | short sale bans | en |
dc.subject | predatory trading | en |
dc.subject | short sales | en |
dc.subject.ddc | 310 | - |
dc.subject.ddc | 330 | - |
dc.subject.ddc | 620 | - |
dc.title | Predatory short sales and bailouts | en |
dc.type | Text | de |
dc.type.publicationtype | workingPaper | de |
dcterms.accessRights | open access | - |
eldorado.secondarypublication | false | de |
Appears in Collections: | Sonderforschungsbereich (SFB) 823 |
Files in This Item:
File | Description | Size | Format | |
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DP_2317_Kranz_Löffler_Posch.pdf | DNB | 408.95 kB | Adobe PDF | View/Open |
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This item is protected by original copyright
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