Short-Selling Restrictions and Returns: A Natural Experiment

Returns to Education in Tanzania: exploiting a natural experiment

We use education reforms implemented in Tanzania in the 1960s as a source of exogenous variation in education to estimate the returns to education in nationally representative cross sectional datasets from 2001 and 2006. We find that returns to an extra year of education are between 8% and 13% when using OLS. The education reform increased the number of students finishing primary school and inc...

Estimating returns to education using different natural experiment techniques

How much do returns to education differ across different natural experiment methods? To test this, we estimate the rate of return to schooling in Australia using two different instruments for schooling: month of birth and changes in compulsory schooling laws. With annual pre-tax income as our measure of income, we find that the naı̈ve ordinary least squares (OLS) returns to an additional year of...

The Information Content of Short Interest: A Natural Experiment

Do foreign short-sellers predict stock returns? Evidence from daily short-selling in Korean stock market ¬リニ

Article history: Received 12 September 2014 Accepted 20 January 2015 Available online 24 January 2015 We investigate the daily short-selling by foreign investors and their impact on stock price, liquidity, and volatility in the Korean stock market. From January 1, 2006, to May 31, 2010, we find that the majority of short-selling is performed by foreign, rather than by domestic, investors and th...

Short-Selling Attacks and Creditor Runs

This paper investigates the mechanism through which short selling of a bank’s stocks can trigger the failure of the bank. In the model, creditors, who learn information from stock prices, will grow increasingly unsure about the bank’s true fundamentals in facing noisier stock prices; thus a run on the bank is more likely because of creditors’ concave payo¤. Understanding this, speculators condu...