The Impact Of Short Selling Mechanism On Corporate Investment Efficiency

Since the official launch of the trial of short-selling transactions in China,after more than seven years of development,by December 2017,the number of short-selling securities has reached 947.The relaxation of short-selling controls will inevitably have an impact on the financial market.It has a certain impact on the behavior of the underlying company as well.Investment is one of the most important business decisions of the company.The efficiency of investment affects the development of the company.Therefore,it is of profound theoretical and practical significance to study how the short-selling transactions affects the investment efficiency of the company.This paper defines investment efficiency by using appropriate indicators through reading and sorting out the relevant literature at home and abroad,selects listed companies from 2008 to 2017 as empirical samples,screens the samples according to research needs,and studies the impact of short-selling system on investment efficiency of Listed Companies in China.Through empirical analysis,we find that: first,the implementation of the short selling system is conducive to the improvement of the investment efficiency of Listed Companies in China;secondly,the level of corporate governance will affect the effect of short-selling system on investment efficiency.For companies with higher corporate governance level,the implementation of short-selling system has relatively less improvement on the investment efficiency of the company;thirdly,the degree of information asymmetry also affects the effect of short-selling system on investment efficiency.The more opaque the information of the company,the more obvious the short-selling system improves the investment efficiency of the company;Fourthly,compared with non-state-owned enterprises,the implementation of the short-selling system of margin trading has relatively little improvement on the investment efficiency of state-owned enterprises.Finally,according to the relevant empirical conclusions,it is expected to provide a reference for the managers of Listed Companies in the new financing environment how to make investment decisions and provide a way for the management to implement the short-selling system.