Study On The Short Selling,Information Disclosure Quality And Dynamic Capital Structure Adjustments

Recent years,capital market regulators promote the development of margin trading system in our country actively.They hope that the implementation of margin trading system can improve the liquidity of China's capital market,broaden the financing channels of listed companies,and promote the improvement of the assets and liabilities structure of companies.As an important part of financial innovation,the introduction of short selling not only improves the effectiveness of capital market and perfect the formation of market price stability mechanism.It also plays the role of external governance effect,restricts the private interests of management,affecting the quality of information disclosure and financing decision-making behavior of micro-enterprises.Thus,this paper explores the impacts and consequences of short selling on dynamic capital structure adjustments from the aspect of intermediary effect of information disclosure quality.There is very important theoretical and practical significance to promote the healthy development of our capital market and perfect the corporate capital structure.In this paper,we use the information asymmetry theory,signal transfer theory,market timing hypothesis and dynamic adjustment theory of capital structure as the theoretical foundation to analyze the relationship between short-selling mechanism and information disclosure quality,and the relationship between short-selling mechanism and dynamic adjustment of capital structure.Then constructs the theoretical analysis framework of short selling,information disclosure quality and dynamic capital structure adjustments.We find that the existence of information asymmetry between investors and corporate management makes it hard for external investors to predict and judge investment risks.Based on signal transfer theory and market timing hypothesis,information disclosure quality is a main factor to attract and change investors' investment behavior.High-quality information disclosure can effectively enhance investors' confidence,reduce the financing cost of companies and perfect capital structure.Based on the listed companies in Shenzhen stock market during 2008 to 2017,this paper studys the influence of short selling on information disclosure quality,the influence of short selling on dynamic capital structure adjustments,and the conduction of short selling through information disclosure quality to dynamic capital structure adjustments.In this paper,we take the quality of information disclosure as themediating variable,adopt the methods of double difference,linear regression and intermediate effect inspection and so on.The results show that the introduction of short selling plays a positive external governance effect in the capital market,restrains the private interests of management,and improves the quality of information disclosure.And then accelerates the adjustment of the real capital structure to its target capital structure and educes the deviation between the actual capital structure and the target capital structure.The information disclosure quality plays significant mediating effects in the relation between Short Selling and dynamic capital structure adjustments.Finally,in order to promote short selling governance effect,dynamic adjustment of corporate capital structure optimization,this paper puts forward that focusing on perfect the system design of short selling in China's capital market,continue to expand the scope and scale of the pilot projects of margin trading and refinancing business.And considering the aspect of maintaining the healthy development of capital market,this paper puts forward that we should speed up the construction of relevant laws and regulations system of short selling and so on.