An Empirical Study On The Impact Of Margin Trading On The Pricing Efficiency Of The Growth Enterprise

As an important trading system in mature markets,the introduction of securities margin trading breaks the short-selling constraints of our country and helps us to improve the pricing efficiency of stocks.At the beginning,it has aroused great concerns of scholars.Today,margin trading has become an important part of China's securities market,but the impact of margin trading on China's securities market stock pricing efficiency is still controversial.Meanwhile,compared with the main board market,the stocks on GEM have high price and high risks.Therefore,it is of positive effect to analyze the changes of stock pricing efficiency after opening securities margin trading.It has a positive effect on the analysis of the impact of margin trading on the pricing efficiency of China's stock.This paper uses the non-equilibrium data panel model to explore the impact of securities margin trading on pricing efficiency from two aspects: stock valuation and the speed of stock information reaction.Based on the two aspects of the testing results,this paper draws the following conclusions: First,although it can not prove that the excess return is the results of short selling and heterogeneous beliefs,after the implementation of margin trading business,There is a certain degree of decline;Second,in the implementation of margin trading business,the GEM stock information response speed has improved,and bad news message response speed increase more obvious.In addition to the two conclusions,in the process of robustness testing,this article also found that the pricing efficiency in bull market increased more obvious after the implementation of margin trading.To sum up,this paper believes that the securities margin trading will improve the pricing efficiency of China's GEM stocks.