Dr. Jonathan Bitting, an assistant professor in the Department of Finance, Banking and Insurance at Appalachian State University's Walker College of Business, has co-authored a compelling study that sheds light on how corporate executives use anti-short-selling rhetoric and what happens next.
Recently featured in Forbes, Bitting's research examines the behavior of executives who publicly blame short sellers for their stock’s poor performance. The findings? Rather than defending their stock, these executives are significantly more likely to sell their own shares, issue new stock, and even revise financial statements—moves that can ultimately harm investors.
The study analyzed thousands of companies and revealed a striking pattern: firms that attack short sellers are 70% more likely to see insider stock sales, 154% more likely to issue new stock, and 400% more likely to release major financial restatements. These findings provide important insights for investors, policymakers, and the broader financial community.
The research, a collaboration between Bitting and researchers at the University of Kansas (Justin Baltrhop and Ryan Clark), contributes to the ongoing conversation about transparency and accountability in financial markets.
Read the full paper online, Trade as I say, Not as I do: Management Rhetoric and Insider Stock Sales.
About Faculty Research in the Walker College of Business
The Walker College faculty produce and disseminate extensive research through both academic and professional communities. In the last five years, faculty have published 543 peer reviewed academic journal articles, 160 conference proceedings, and made 533 conference and professional presentations. In total, faculty have produced 1,175 intellectual contributions in the last five years. Approximately 520 intellectual contributions were made in basic or discovery research, 540 in applied or integrative research, and 115 contributions in teaching and learning research. Learn more at https://business.appstate.edu/faculty/research.
About the Department of Finance, Banking and Insurance
The Department of Finance, Banking, and Insurance develops leaders for business, government, and education by offering a Bachelor of Science in business administration in two specializations: finance and banking and risk management and insurance. Learn more at https://finance.appstate.edu.
Jonathan Bitting
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