Research On The Governance Effect Of Margin Trading

Since March 2010,securities margin trading has been formally implemented in China,marking the end of unilateral trading in China’s securities market and the beginning of bilateral trading phase that can be long and short.And through years of processive development and dilatation,the number of enterprises in the field of securities margin trading continues to increase,and the number of market investors participating in the transaction is also increasing sharply.The remarkable effect of securities margin trading has had a huge impact on the whole securities trading field,the target companies and market participants.At present,domestic and foreign scholars have discussed a lot about the relationship between securities margin trading and the capital market,but there are few relevant references at the micro level.The investment activities of the company have an impact on the company’s future development and investment income.Macroscopically,the company’s investment can affect the overall operation of the macro economy,but at present,low investment efficiency is common in companies of the domestic market.Therefore,the paper research the connection between securities margin trading and investment efficiency of enterprises and explores whether securities margin trading has governance effect by taking the enterprises that entered the target list of securities margin trading in China’s A-share market from 2009 to 2019 as the experimental group and other enterprises that are not included in the target list of securities margin trading as the control group.Besides,this paper differentiates the distinct between margin financing transactions and securities lending transactions on investment efficiency,and further research the impact of securities margin trading on the company’s investment efficiency at different management ability.This paper takes the rapid development of securities margin trading in my country as the main research context,the first systematic summary of the domestic literatures at home and abroad,combed the mechanism of securities margin trading development history,current situation and troubles,and then from the base of theoretical analysis and empirical analysis on two aspects,explores the mechanism of securities margin trading how to effectively restrain the inefficient investment of enterprises.The fundamental theories included in this article are principal-proxy theory and message unbalanced theory.empirical study part,use a double-difference model to test the effect of policies.In order to observe the role of margin financing transactions and securities lending when the level of corporate governance is different,the sample data are further grouped and regression.The study found that securities margin lending can significantly inhibit the inefficient financing level of enterprises,not only restrict the excessive investment of company,it also reduces the company’s underinvestment.After empirical analysis,this paper puts forward that margin financing transactions and securities lending have different impacts on enterprises’ inefficient investment activities,that is,margin financing transaction mechanism can promote enterprises’ inefficient investment activities,but securities lending can restrict enterprises’ inefficient investment activities.It can be seen from the holistic effect of securities margin lending,After the implementation of this transaction system,the investment in the inefficient behavior of enterprises is significantly reduced,which shows that securities lending plays a more important role in external governance.Further study also shows that,compared with higher levels of the company and the business management,and in the case of low management capacity of the company,the securities margin trading of the role of the efficiency of investment is more significant,illustrate the introduction of this mechanism has played an external governance role and improve the level of corporate governance.At the same time,in order to avoid the influence of endogeneity questions,make the research achievement more stable,this paper carried out the stability test of the results matching by PSM-DID,and the findings were found to be robust.Finally,based on the research conclusions,this article provided policy opinions on margin financing and securities lending.