Research On The Impact Of Margin Trading On R&D Investment

Margin trading is a crucial institutional reform of the capital market.It will necessarily affect the financing channels of enterprises,and further influence enterprises’ R&D investment.The study on the relationship between margin trading and R&D investment of enterprises shows one way in which capital markets act on micro-firms.Based on the asymmetric information theory and principal-agent theory,this paper analyzes that margin trading will promote enterprise R&D investment by reducing the degree of information asymmetry and alleviating principal-agent problems.And further based on microeconomics maximizing profit margin,graph model is constructed to discuss the relationship between margin trading,financing restriction,and R&D investment.By successively introducing external capital investors and margin trading,it is analyzed that margin trading will reduce the financing restriction of enterprises,and then increase the R&D investment of enterprises.Therefore there may be a financing restriction mechanism that margin trading affects R&D investment of enterprises.Companies listed on the main board of Shanghai and Shenzhen A-shares from2009 to 2020 are selected as the research sample,and the difference-in-differences model is used to empirically test the impact of margin trading on R&D investment and its mechanism.The empirical test draws the following five conclusions.First,margin trading will significantly enhance R&D investment.Second,margin trading significantly improves R&D investment by reducing financing restriction.Third,from the perspective of property rights,margin trading plays a significant role in promoting R&D investment only in non-state-owned enterprises.Fourth,from the perspective of industry attributes,margin trading plays a significant role in promoting R&D investment only in high-tech enterprises.Fifth,from the perspective of enterprise size,margin trading has a significant effect on enterprise R&D investment only in large-scale enterprises.Sixth,from the point of view of registered regions,margin trading plays a significant role in promoting enterprise R&D investment only in eastern and central enterprises.Seventh,long-term effect analysis shows that margin trading has an impact period of five years on enterprise R&D investment.Finally,combined with the above research conclusions,this paper puts forward several policy suggestions,such as accelerate the expansion of margin trading target stocks,reasonably reduce the cost of margin trading,continue to optimize the structure of investment entities,improve the institutional environment for margin trading,and release the innovation potential of margin trading target enterprises.