Research On The Impact Of Margin Financing And Short Selling On Earnings Management Under The Adjustment Of Equity Nature

Since June 2015,the depression of China's stock market and the outbreak of the stock market disaster have once again made margin lending and short selling the focus of public attention,and the short selling system has become the focus of controversy.In March 2010,China officially launched the pilot of margin trading and short selling,realizing bilateral trading in the securities market,marking that China's securities market has entered a new stage of credit trading.Margin lending and short selling can improve stock market liquidity,reduce stock market volatility,improve stock pricing efficiency and help maintain financial market stability.At present,the academia tends to study the influence of margin trading on corporate governance from the micro level.Among them,with the development and accumulation of experience of margin lending and short selling business in China,margin lending and short selling business has a growing impact on earnings management,and the improvement of information and data in all aspects should be gradually attached importance to.From the perspective of corporate governance and the interests and purposes of shareholders themselves,this paper discusses the different requirements and supervision of shareholders with different ownership natures on enterprises,and demonstrates that enterprises with different ownership natures should implement different degrees of earnings management.Based on contract theory,principal-agent theory,information asymmetry theory,signal transmission theory and market efficiency theory,this paper demonstrates the inhibiting effect of margin financing and short selling on earnings management,and finds that the inhibiting effect of enterprises with different ownership natures is different to some extent.This paper selects the data of a-share listed companies in Shanghai and Shenzhen from 2008 to 2017,and USES the dual difference model system to empirically study the impact of margin financing and short selling on earnings management.The study found that the degree of earnings management of listed companies was significantly reduced after they became the target companies of margin financing and short selling.In the relationship between margin financing and short selling and earnings management,the nature of equity has a moderating effect.Among state-owned enterprises,margin purchase and short selling are more significant in restraining earnings management.But in the non-state-owned enterprise this kind of restraint is not remarkable.This study helps to further understand the role of margin lending and short selling,and provides a new empirical basis for better playing the role of margin lending and short selling in government management,corporate governance and market supervision,and promotes the maturity of China's securities market.Therefore,it is of great significance to clarify the impact of margin lending and short selling on the earnings management of companies with different equity natures in China,as well as the impact of margin lending and short selling on the improvement of margin lending and short selling business system,system construction,corporate governance,macro-economy and the development of securities market.