| The margin trading business has been officially launched in China on March 31,2010,which marks the official end of the "one-sided market" mode in China’s securities market.Spanning the decade since the introduction of the margin trading business,it has experienced altogether six developing stages.Serving as a credit trading system,the arrangement of the margin trading system has had a far-reaching impact on both the opening of the capital market and the financing of listed enterprises.Over the past few years,the economic growth rate of China has slowed down,as well as the industrial investment opportunities and return rates,which altogether result in enterprises going for more financial investment.This to some extent has intensified the "enterprise financialization" trend.Under such a scenario,it is beneficial,for the continued stable growth of China’s capital market,the high-quality development of the real economy,and better practice of the "financial services to the real economy" concept,to analyze the impacting mechanism of the finalization of listed enterprises in China with the arrangement of the margin trading system.This study utilizes the data collected from 2007 to 2020 of the listed companies in both Shanghai and Shenzhen,and further introduces the margin selling policy as the exogenous impact time.Therefore,this study constructs a PSM-DID method and analyzes the impact of the arrangement of the margin trading system on the financialization of real enterprises.Meanwhile,it analyzes the mediation effect of theories such as the theory of entrustment and agency,the theory of information asymmetry,and the theory of behavioral finance on the financialization of real enterprises.Based on the fundamental of these analyses,this study further discusses the differentia between different enterprises caused by the margin trading business based upon different SOE,and diverge INSHOLDSHR.Finally,the robust test using the time-period test method and variable substation method ensures reliability and robust results.The conclusions drawn from this study are listed as follows.(1),The introduction of the margin selling system will deepen the financialization of enterprises,and enterprises will invest more funds in the financial market,which may cause lead the overall economy "from the real to the virtual".(2)Due to the obvious asymmetry in China’s capital market,the launch of the margin system may reduce the information in the stock and deepen the financialization of enterprises.Meanwhile,it may also decrease the management quality of enterprises and positively encourage the financialization of enterprises.In addition,it has further suppressed the release of investors’ emotions and improved the quality of corporate financialization.(3)Based on the test of the heterogeneity,non-state-owned enterprises have a higher extent of financialization.For enterprises with a relatively higher proportion of institutional investors,the effects of the margin selling system become more obvious in promoting financialization. |
