The Effect Of Margin Trading On Stock Price Synchronicity Under The Perspective Of Corporate Information Transparency

China launched a pilot scheme in March 2010 to lift the ban on short-selling and margin-trading,marking the end of our stock market unilateral market,represented by the financial securities business also means that brewing for many years the formal introduction of short selling.Since the implementation of the short selling system,its actual operation has received close attention from practitioners and academics and has caused widespread controversy.According to the CSRC's expectation,"margin trading can incorporate more information into the price of securities and can provide the market with securities trading activities in opposite directions.When investors think the stock price is too high or too low,you can buy or sell the stock through margin trading.This behavior is conducive to the stock price tends to be reasonable,generally contribute to the formation of market price stability mechanism." From the perspective of regulators and investors,it is a matter of widespread concern whether the margin trading system facilitates the integration of more information on individual stocks into prices and promotes the formation of a market price stability mechanism.The answer to this question is conducive to further standardize the margin trading system,and promote market development.Based on the above problems,by taking the China's A-share listed companies from 2007 to 2016 as samples,this paper discusses the implementation of margin trading on the information disclosure environment from the perspective of synchronization of the stock price.It is found that the margin trading is negatively correlated with the stock price synchronization,and the conclusion is still true after a series of strict endogeneity tests.The results of sub-sample group regression analysis show that the company with the higher proportion of institutional investors,the more attention of analysts,the bigger the board size,the higher ratio of independent director and higher audit quality,the negative correlation of margin and stock price synchronization is more significant,indicating that the effect depends on the internal and external governance mechanisms of synergies.In big-scale companies,the synergistic effect of margin trading on stock price synchronization is more significant,indicating that the margin system is conducive to improving the information disclosure of the company with low information transparency.Final test found that the opening of margin trading improved the transparency of listed companies which would reduce stock price synchronization.According to the conclusion of the study,this paper puts forward the improvement of the trading system to promote the balanced development of margin trading,and establishes the comprehensive investor protection mechanism.In the case of the rapid development of margin trading,the research results can provide some reference to policymakers,so that promote the mechanism of margin trading,and build an effective securities market better.