Lifting Of Short Sale Constraint And Trade Credit Financing

In March 2010 the introduction of margin trading in China as the background,this paper applies the sample of company from 2007 to 2016 in A share market to do research,by building the introduction of difference-in-differences model is empirically tested the shorting mechanism of the influence of the target company of commercial credit financing,and combining the properties of different property rights in China as well as the differentiation of equity structure,the two key factors further examines the short selling mechanism's influence on enterprise commercial credit financing.In this paper,through the study found that: first of all,relaxed short-selling rules can accelerate the reaction rate of negative news on the securities market,increases the credit risk faced by commercial credit suppliers,and then through the advance deterrent effect and punish afterwards effect makes the enterprise commercial credit financing to reduce short target;Secondly,from the perspective of the property rights of enterprises,the study finds that the reduction of short selling control is more significant in private enterprises.Finally,further consider the company's equity structure,compared to equity balance degree big enterprise,relax shorting control role in the decrease of the commercial credit financing company in equity balance degree is more pronounced in the small company.These results indicate that although the introduction of short selling mechanism in our country time is shorter,short volume is relatively small,but as a kind of external governance mechanism,by influencing the enterprise interior the obligor and the external commercial credit prior and after the reaction,is playing the advance deterrent effect and punish afterwards,enabling companies face a smaller scale of the commercial credit financing,and make up for a lack of internal governance of listed companies in China and regulation on corporate financing behavior,but also for small and medium-sized shareholders of the company,as well as external stakeholders played an investment protection.Innovation point of this paper is to study from the perspective of enterprise commercial credit financing effect of relaxed short-selling rules,the study not only enriches the existing literature on short-selling effect mechanism research,and for Chinese listed companies improve their commercial credit financing problems.At the same time,the shorting mechanism of the governance function helps us to better understand the implications of short selling mechanism for micro enterprises,and deepen the understanding of relaxing short control effect,and to better improve our margin policy and deepen the financial reform to provide the corresponding empirical evidence.