Impact of Short Sale Constraints on Pricing of Restricted Stocks

  • Hai Lin
  • Zhenlong Zheng
Conference paper


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.


Income Volatility 


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Copyright information

© Springer Science+Business Media B.V. 2008

Authors and Affiliations

  • Hai Lin
    • 1
  • Zhenlong Zheng
    • 2
  1. 1.Department of Finance and Wangyanan Institute for Studies in EconomicsXiamen UniversityXiamen,361005China
  2. 2.Department of FinanceXiamen UniversityXiamen,361005China

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