Short Selling, Informed Trading, and the Role of Social Media

Leslie Boni, Shwadhin Sharma, Christina Zhang

Research output: Contribution to journalArticlepeer-review


This paper investigates the relationship between short selling and Twitter activity prior to merger and acquisition announcements. Data are for U.S.-listed banking firms from 2009 to 2013. In the week prior to the M&A announcement, we find abnormal daily short selling, particularly for cash deals. Twitter activity, rarely present in the week prior to the M&A announcement, spikes at the time the deal is announced. Social media tips do not appear to provide a channel for information transfer to short sellers prior to M&A announcements nor do sellers use social media to apply market pressure for stocks they have shorted.
Original languageAmerican English
JournalJournal of Accounting and Finance
StatePublished - Sep 30 2018


  • Accounting
  • Finance
  • Market
  • Stocks


  • Business
  • Accounting
  • Social Media

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