Empirical Analysis On The Impact Of Margin Trading With The Listed Company Earnings Quality

The main content of this paper is the influence of margin trading on the earnings quality of the listed company in China.The earnings of listed companies reflect the development condition and results of operations,after the event that many domestic and foreign financial fraud or earnings manipulation,the earnings quality of listed companies gradually become the focus of investor attention.Investors tend to choose investment targets based on the level of the earnings quality.2010,China allows the securities market to carry out margin trading.This event can be said to be a milestone in the development of China's securities market.The motivation to manipulate earnings because of the leverage of new forms of investment introduced,strengthen the role of external supervision of the investors and possibly will reduce the management of listed companies.These helps to improve the earnings quality of the listed companies.Compared with developed countries,China has a short period in the development of margin trading and securities lending business,research under the condition of margin trading,earnings quality of listed companies changes to improve the corporate governance structure has certain theory significance and the practical significance.This paper uses the methods of normative analysis and empirical analysis to study the impact of margin trading on the earnings quality of the listed company.The main research contents include:introduction,related concepts and literature review,theoretical analysis,the impact of margin trading on the listed companys' earnings quality empirical analysis,conclusions and countermeasures.In the foundation of reading massive literature,the concept of earnings quality and margin trading are defined.In the part of theoretical analysis,this paper expounds the related contents of the principal-agent theory,information asymmetry theory,resource allocation theory and double difference model,and builds the theoretical foundation.In the empirical analysis,this paper in order to enter the margin list of the listed company as the experimental group,did not enter the list of the selected margin for the control of the listed company,with the 2006-2014 period,selecting the experimental group and control group of 764 listed companies,using DID model with the descriptive analysis,correlation analysis and regression analysis model to investigate the relationship between margin trading behavior and the earnings quality of the listed company,and draw the following conclusions:under the condition of margin trading,the earnings quality of the listed company has improved;interference in the margin behavior.When the listed company financial risk increases,the quality of corporate earnings will decline.Under the interference of the behavior,when the listed company's profitability increased,the company's earnings quality will be increased.At the end of the article,this paper puts forward the corresponding suggestions,in order to provide reference for the improvement of corporate governance.