Impact of short sale constraints on pricing of restricted stocks

Hai Lin

pp. 175-178

in: Magued Iskander (ed), Innovative techniques in instruction technology, e-learning, e-assessment, and education, Berlin, Springer, 2008

Abstract

This paper introduces the short sale constraints into the consumption-portfolio choice of the investor and studies the pricing of restricted stocks under the short sale constraints. The results show that the short sale constraints have a significant impact on the value of restricted stocks.