Abstract

We use a quasi-natural experiment of the introduction of margin trading and short selling in China. We investigate the impact of margin trading and short selling on the investment efficiency. The results show that margin trading and short selling can improve the investment efficiency of listed firms.The further group regressions show that margin trading and short selling can effectively alleviate over-investment but have no effect on the under-investment problem.

Talk to us

Join us for a 30 min session where you can share your feedback and ask us any queries you have

Schedule a call

Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.