Research On The Effect Of Short Selling On Enterprise Innovation Considering Management Background Characteristic

On March 31,2010,Short selling was formally implemented in China,marking the era when China's capital market entered a bilateral trade.As a trading mechanism,margin trading system takes on the functions of price discovery,market stability,liquidity enhancement and risk management in China's capital market.In addition,the margin trading system,especially Short selling,is an important complement to the existing corporate governance mechanism in our country and will have a direct impact on the behavior of Chinese enterprises.However,as the mechanism started relatively late in our country and is still not perfect in some aspects,the governance effect of the margin trading system has been controversial.In this context,research on the impact of short selling mechanism on the behavior of enterprises,to improve the margin trading system,regulate corporate behavior is of great significance.Enterprise's innovative investment behavior is one of the important means to maintain competitive advantage and enhance future performance.However,for their own benefits,managers who lack of supervision often make decisions to reduce R & D investment.Studies have shown that good corporate governance can alleviate agency conflicts to a certain extent and constrain management's inappropriate behavior in innovation decision-making.So,as an important external governance mechanism,short selling mechanism can restrain manager's slack behavior in innovation investment? In response to the above problems,this paper take the data of A-share Listed companies in China as a sample to examine the impact of the liberalization of short selling on managers' opportunistic behavior in innovative investment from the perspectives of managers themselves,major shareholders and other stakeholders.At the same time,the background characteristics of managers into the theoretical analysis framework,managers from age characteristics,tenure characteristics and gender characteristics of three differences,the mechanism of short-selling incentives for enterprise innovation to exert the effect of different enterprises exist difference.The main conclusions of this paper are as follows:(1)There is a positive correlation between the short selling mechanism and the innovation input of enterprises,that is,the introduction of short selling mechanism has a positive incentive effect on the innovation input of enterprises;(2)There are differences among enterprises that have different background characteristics.Incentive effects of short selling on innovation inputs are more pronounced in firms with shorter average management tenures than those in management with average expected tenure.Relative to the average management age,short selling mechanism Incentive effect of enterprise innovation investment is more significant in the average senior management of the company;however,the regulatory role of the manager's gender in short selling and innovation investment is not significant.(3)Based on the test of the impact of short selling mechanism on the innovation investment of enterprises,this paper further verifies the impact of short selling mechanism on the innovation output of enterprises.It is found that the mechanism of short selling has significant positive correlation with the firm's substantive innovation output.There is a significant negative correlation between the mechanism of short selling and the non-substantial innovation output of the firm.The mechanism of short selling is negatively related to the total output of firm innovation,but not statistically Which may be due to the offset of the increase of substantive innovation output and the decrease of non-substantive innovation output.