Research On The Impact Of Short Selling Mechanism On Enterprise Innovation From The Perspective Of Accounting Information Quality

On March 31,2010,the first batch of financing and margin trading pilot targets announced by the Shanghai Stock Exchange and the Shenzhen Stock Exchange represented the first introduction of a short-selling mechanism in China's stock market in more than 20 years.With the continuous expansion of the number of short-saleable stocks,the short-selling mechanism is becoming more mature in China,and research on its impact on corporate behavior has also received more attention.Based on the background of stock distribution expansion in China's margin trading,this paper exploits difference-in-differences method and examines the impact mechanism of short selling mechanism on corporate innovation.Taking the A-share listed Manufacturing enterprise of Shenzhen Stock Exchange from 2009 to 2017 as a sample,we compare the difference in the total number of patents application by pilot firms before and after the short selling mechanism was implemented and that of the non-pilot firms,and find that the implementation of the short selling mechanism has significantly increased the target company's total number of patent applications.And using the intermediary effect test model,it has been found that the short selling mechanism can increase the total amount of patent applications by improving the quality of accounting information disclosure.The empirical results show that,compared with the companies that are not included in the short-selling list,the short-selling mechanism has significantly improved the innovation level and the quality of accounting information disclosure of the target company.The quality of accounting information disclosure plays a partial intermediary role in the process of short-sale mechanism affecting corporate innovation.And the short-selling mechanism only has a significant promotion effect on exploratory innovation,and has no significant impact on developmental innovation.Further analysis shows that the short-selling mechanism's role in promoting corporate innovation is embodied in low-management power companies and in less competitive markets.Finally,according to the influencing factors of enterprise innovation and empirical research results,suggestions for improvement are made in terms of the scope and scale of short selling margins,information disclosure mechanism,corporate governance mechanism and innovation model,etc.,aiming to help enterprises improve their innovation level.There are 2 figures,14 tables and 59 references in this paper.