Short-selling threats and real earnings management - International evidence

Haiyan Jiang, Yafeng Qin, Ming Bai

Research output: Contribution to journalArticle


This paper investigates the effect of short selling threat on managers' earnings management choices in an international setting. Using data from 22 countries between 2003 and 2015, we find that short-selling threat constrains real earnings management, and this effect is mainly driven by firms operating in countries with weak shareholder protection. Furthermore, we also reveal that the monitoring effect of short sale is more pronounced in countries where short sale is not only legal but also feasible.
Original languageEnglish
JournalJournal of International Accounting Research
Publication statusE-pub ahead of print - Mar 2020
Externally publishedYes



  • Short selling
  • earnings management
  • internationa
  • shareholder protection

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