Enemy at the Gates

Short-selling and Firm Performance on Corporate Social Responsibility - Evidence from a Natural Experiment

Vanya Rusinova, Georg Wernicke

Research output: Contribution to conferencePaperResearchpeer-review

Abstract

In this paper, we test for a causal relationship between short-selling and firms’ performance on Corporate Social Responsibility (CSR). To establish causality, we use the exogenous variation in short-selling restrictions induced by the Pilot Program under Regulation SHO of 2004. The Pilot program decreased the costs of short-selling for randomly selected subset of firms which resulted in an increase in the threat of short-selling for these firms. Results from a sample of U.S. firms for the years 2002 - 2006 suggest that an increase in the likelihood of being subject to short-selling increases firm performance on CSR. We further test how the temporal orientation of firms’ institutional owners and different level of firms’ financing constraints moderate the relationship between short-selling and firm performance on CSR.
Original languageEnglish
Publication date2017
Publication statusPublished - 2017
EventStrategic Management Society 38th Annual International Conference. : Strategies in the Era of De-Globalization - Paris Marriott Rive Gauche Hotel, Paris, France
Duration: 22 Sep 201825 Sep 2018
https://www.strategicmanagement.net/paris/overview/overview

Conference

ConferenceStrategic Management Society 38th Annual International Conference.
LocationParis Marriott Rive Gauche Hotel
CountryFrance
CityParis
Period22/09/201825/09/2018
Internet address

Bibliographical note

CBS Library does not have access to the material

Cite this

Rusinova, V., & Wernicke, G. (2017). Enemy at the Gates: Short-selling and Firm Performance on Corporate Social Responsibility - Evidence from a Natural Experiment. Paper presented at Strategic Management Society 38th Annual International Conference. , Paris, France.
Rusinova, Vanya ; Wernicke, Georg. / Enemy at the Gates : Short-selling and Firm Performance on Corporate Social Responsibility - Evidence from a Natural Experiment. Paper presented at Strategic Management Society 38th Annual International Conference. , Paris, France.
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Enemy at the Gates : Short-selling and Firm Performance on Corporate Social Responsibility - Evidence from a Natural Experiment. / Rusinova, Vanya ; Wernicke, Georg.

2017. Paper presented at Strategic Management Society 38th Annual International Conference. , Paris, France.

Research output: Contribution to conferencePaperResearchpeer-review

TY - CONF

T1 - Enemy at the Gates

T2 - Short-selling and Firm Performance on Corporate Social Responsibility - Evidence from a Natural Experiment

AU - Rusinova, Vanya

AU - Wernicke, Georg

N1 - CBS Library does not have access to the material

PY - 2017

Y1 - 2017

N2 - In this paper, we test for a causal relationship between short-selling and firms’ performance on Corporate Social Responsibility (CSR). To establish causality, we use the exogenous variation in short-selling restrictions induced by the Pilot Program under Regulation SHO of 2004. The Pilot program decreased the costs of short-selling for randomly selected subset of firms which resulted in an increase in the threat of short-selling for these firms. Results from a sample of U.S. firms for the years 2002 - 2006 suggest that an increase in the likelihood of being subject to short-selling increases firm performance on CSR. We further test how the temporal orientation of firms’ institutional owners and different level of firms’ financing constraints moderate the relationship between short-selling and firm performance on CSR.

AB - In this paper, we test for a causal relationship between short-selling and firms’ performance on Corporate Social Responsibility (CSR). To establish causality, we use the exogenous variation in short-selling restrictions induced by the Pilot Program under Regulation SHO of 2004. The Pilot program decreased the costs of short-selling for randomly selected subset of firms which resulted in an increase in the threat of short-selling for these firms. Results from a sample of U.S. firms for the years 2002 - 2006 suggest that an increase in the likelihood of being subject to short-selling increases firm performance on CSR. We further test how the temporal orientation of firms’ institutional owners and different level of firms’ financing constraints moderate the relationship between short-selling and firm performance on CSR.

M3 - Paper

ER -

Rusinova V, Wernicke G. Enemy at the Gates: Short-selling and Firm Performance on Corporate Social Responsibility - Evidence from a Natural Experiment. 2017. Paper presented at Strategic Management Society 38th Annual International Conference. , Paris, France.