Short Selling Threat and News Sentiment Management in Press Releases
研究发现，面临卖空威胁增加的企业会主动提升新闻稿中的正面情绪，以抑制卖空行为，且这种策略在卖空限制取消后更为明显。
This study presents evidence that firms actively manage sentiment in press releases to reduce their exposure to short selling threats. I exploit the suspension of short selling constraints as an exogenous shock to the short selling threat borne by firms. Using a sample of 110,938 firm-press release observations from 2001 to 2007 and a difference-in-differences methodology, I find that firms facing increased short selling threats increase the sentiment in press releases after the suspension of short selling constraints more than otherwise similar firms without increased short selling threats. Meanwhile, higher sentiment in corporate press releases deters short sellers. Specifically, stocks with the suspension of short selling constraints are more likely to be short sold but such stocks with higher news sentiments are less likely to be short sold. These findings suggest that press release sentiment can be strategically used by firms to advance their own interests.