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Short Sale And The Quality Of Information Disclosure

Posted on:2018-07-18Degree:MasterType:Thesis
Country:ChinaCandidate:Z L LiFull Text:PDF
GTID:2359330533455084Subject:Accounting
Abstract/Summary:PDF Full Text Request
The margin transactions institution has been implemented since March 31,2010 in China.Almost 950 securities were added into the stock market successively over five batches.Taking a good quasi experimental research opportunity,Using a firm-level dataset from 2010 to 2015 in China,selecting the accounting conservatism as a measure of the information disclosure quality,this paper examines how short sale affects Information disclosure of listed companies.The empirical results indicate that compared with control firms,companies that are eligible for short sales significantly increase their accounting conservatism after they are designated as underlying securities.This effect is more pronounced for company with higher degree of marketization and without balanced ownership structure.Moreover,we find that short sales system plays a role of governance mechanism of two underlying channels.A more efficient managerial incentives and more analysts coverage would appeared when companies under the pressure of short sale.The above research conclusion shows that short sale of China's capital market is play a role of external corporate governance and can helps management to improve the quality of information disclosure of listed companies.This paper may be innovative in the following two aspects.First,explore the potential mechanism of short sale playing the role of information disclosure governance.Second,examine implementation effect of short sale from the overall and sub-time window.
Keywords/Search Tags:Margin trading, Short sale, Information disclosure, Accounting conservatism
PDF Full Text Request
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