New research shows companies can discourage short-sellers by offering more investor/analyst site visits.
Sampling firms listed on the Shenzhen Stock Exchange in 2009-2019, Chinese investigators find that, on average, a firm with one site visit per year experiences 10 percent less short-sales volume (on shares outstanding) in the following year than firms offering no visits.
‘Company site visits have a powerful signaling effect and can, eventually, reduce the probability of short-sales,’ study co-author Siyuan Yan, assistant professor in finance at the East China University of Science and Technology, tells IR Magazine. ‘Firms facing short . . .
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