Margin Trading Has A Governance Effect?

On March 31, 2010, margin trading and securities lending business in the securities market of our country officially entered the pilot run. Since then, China's securities market over can only be buying short "unilateral city" pattern, has entered a new era of bilateral transaction. Margin financing mechanism is introduced to enable investors not only to raise capital to buy shares, betting on profit, can also reduce the price arbitrage short, for China's securities market provides new trading mode and profitable channels. According to statistics, as of mid June 2015, China's margin balance has reached 2.27 trillion yuan, this to our country listed company and investors in the market has a important influence. The card Since the introduction of margin trading and short selling mechanism of securities market, how its implementation effect? Can be described as benevolent see benevolence, the wise see wisdom, the congregation points about. In view of this, this article selects margin financing and governance effect relationship as the research object, from the perspective of earnings management to explore whether margin has governance effects, to margin in China securities market to regulate development put forward countermeasures and suggestions.This article to "melt" the rapid development of the business in the securities market of our country as the research background. Firstly, we compared the system combing the related literature at home and abroad, margin, as well as the development of the historical process and from the theoretical discussion and empirical analysis from two angles, focus on margin is able to inhibit the company's earnings management behavior. In the study. In this paper, the double difference model, selection of the experimental group and the control group were analyzed and compared, the empirical test of the Shanghai and Shenzhen stock company stock become subject of margin securities, whether can inhibit the company management layer of earnings management behavior. Research conclusions show that companies in the experimental group and control group of companies compared After the contrast, the experimental group company stock opening of margin trading and securities lending business, the company earnings management should meter level decreased significantly and if the experimental group company in the area of higher degree of marketization, the effect more obvious, suggesting that the external market environment is a factor of influence margin governance effect. In addition, in the internal environment of the company ownership structure into account found for the shares of listed companies are relatively concentrated, large shareholders lack of checks and balances, firms with weaker governance level, regardless of the company in a higher degree of market or lower area, financing margin on earnings management of listed companies inhibitory effect was not obvious, which indicates that the corporate governance Is to suppress the earnings management in internal and external market environment of the play must be dependent on the effectiveness of corporate governance. To sum up, the financing securities loan can restrain the earnings management behavior of company management layer, margin with governance effect, the governance effect of play depends on the external market environment and internal market environment interaction.