Empirical Study On The Impact Of Margin Trading On Earnings Management Of Listed Companies

For the research on margin trading,foreign countries started earlier,after research,development and exploration,formed a more complete research results.In China,margin trading have been carried out since 2010.Therefore,domestic scholars have relatively few problems in the study of margin trading,and most of the research results are focused on the impact of the implementation of margin trading on the macro aspect of the securities market.There is little research on the micro impact of margin trading on listed companies.At the same time,the securities market in China has a relatively short period of time for margin trading,and the relatively high threshold for entry.Our ordinary individual investors are also subject to relatively more restrictions,which leads to the fact that most of the people involved in margin trading are institutional investors.As we know,due to high level of professional institutional investors,as well as profit-driven tendency,the institutional investors are more willing,also can dig more related information of listed companies,in particular,the bad news will because margin leverage amplification effect on enterprise operation,which can further increase of the cost of the enterprise managers by earnings manipulation.In this case,we can see that the conduct of margin trading related transactions will to some extent restrict the behavior of company executives to manipulate profits through earnings management.In view of these,this paper starts from the above analysis idea,takes a-share listed companies in shenzhen and Shanghai as the research object,takes the period from 2007 to 2016 as the sample,adopts DID dual difference model,and conducts empirical research and analysis to analyze the relevant influence of margin trading on the micro behaviors of listed companiesBased on the analysis of empirical results,draws the following conclusions:(1)the introduction of margin trading system can significantly inhibit the degree of earnings management of the management of listed companies,can effectively restrain the earnings management of the management of listed companies,and can improve the quality of earnings of enterprises.(2)after grouping and regression of corporate data with different equity equilibrium degrees,it is found that the equity equilibrium degree of listed companies will affect the inhibiting effect of margin financing and short selling on the earnings management of companies.The more balanced the ownership structure,the less obvious the restraining effect of margin financing on earnings management.(3)through empirical results,it can be found that the property right nature of listed companies will affect the inhibiting effect of margin trading system on the earnings management behavior of major shareholders.Compared with non-state-owned enterprises,this inhibiting effect is more obvious in state-owned enterprises.That is,when the listed company is state-owned,margin trading system has a stronger inhibiting effect on the earnings management behavior of the management.