Research On The Impact Of Margin Trading On Listed Companies' Cost Stickiness

From March 2010,China began to implement Margin Trading system,which has a history of 10 years.Last year,the number of A-share financed funds and bonds was increased from 950 to 1600,and market participants competed to participate in it,which had a huge impact on the securities market and micro enterprises.The existing literature studies more about its impact on financial capital and less on the micro behavior of enterprises.The securities market constitutes a bridge between financial capital and real economy.The cost control of enterprises is related to their performance,growth rate and strategic choice.The Cost Stickiness leads to the discrepancy between the cost function model and the reality,which leads to the deviation of cost estimation.Deviation leads to inaccurate profit estimation and improper decision-making of managers.Due to the existence of Cost Stickiness caused by adjustment cost,agency problem and irrational decision-making of senior managers,cost control of enterprises is particularly difficult.Cost Stickiness has always been the "black box" of cost control,and the study of it is helpful for managers to make reasonable decisions and enterprises to operate for a long time.To solve the problem of cost stickiness is not only to reduce the agency cost and adjustment cost,but also to implement the macroeconomic policy.However,few literatures will examine the impact of securities market system on corporate cost stickiness,especially the impact of emerging Margin Trading system.Combined with the poor information environment and serious Cost Stickiness in Chinese enterprises,this paper studies the impact of Margin Trading on Cost Stickiness.Furthermore,this paper discusses the intermediary role of information transparency in the mechanism of the impact of Margin Trading on cost stickiness,and discusses the impact on Cost Stickiness from the two levels of financing and Margin Trading.It provides ideas for policy makers,market investors and executives to solve the problem of cost stickiness,optimizes resource allocation,promotes executives to make accurate decisions,and improves business efficiency.This paper summarizes the existing research results on the Cost Stickiness of enterprises and Margin Trading,combining the information asymmetry theory and principal-agent theory,and puts forward the hypothesis that Margin Trading can inhibit the Cost Stickiness of enterprises.Among them,the financing transaction can promote the cost stickiness,and the securities lending transaction can inhibit the cost stickiness,but the inhibition effect offinancing transaction is dominant.Margin Trading can also improve the information environment,promote the transparency of information,and play a role in corporate governance.At last,the paper also studies that Margin Trading can promote the transparency of information and then restrain the stickiness of enterprise cost,that is,the partial intermediary effect of the degree of information transparency.This paper uses the A-share listed companies in Shanghai and Shenzhen stock markets from 2010 to 2018 as research samples,builds a basic regression model by constructing a double difference model,tests the intermediary effect of information transparency by using the intermediary effect model,and conducts empirical tests by using descriptive analysis,multiple regression analysis,group regression and other methods.The results show that Margin Trading can significantly inhibit the Cost Stickiness of enterprises,reflecting that a more effective financial market system environment is conducive to improving the efficiency of enterprise cost control.The results of intermediary effect test show that the effect of financing and securities lending is obvious by reducing the degree of information transparency to inhibit the cost stickiness.In addition,comparing the enterprises with high audit quality and low audit quality,it is concluded that in the companies with lower audit quality,Margin Trading has a more obvious inhibition on cost stickiness,which also shows that Margin Trading has an external governance role,which can to some extent compensate for the lack of corporate governance.This study enriches the theoretical basis of cost stickiness,adds the micro level research of Margin Trading,and explores the internal mechanism of the impact of Margin Trading on Cost Stickiness.In order to avoid potential endogenous problems and make the empirical results more robust,this paper uses PSM-DID tendency score matching and changing sample size to test the robustness of the conclusions.Finally,the conclusion of this paper is summarized.In view of how to further play the governance role of Margin Trading,combined with the current situation of China's securities market,this paper gives several countermeasures and suggestions from the macro securities market and micro enterprises:improving the Margin Trading system;increasing the target stocks of Margin Trading;improving the refinancing mechanism;increasing the risk hedging mechanism;standardizing the behavior of managers;improving the information environment of enterprises,etc.