Short selling mechanism and enterprise innovation

Securities credit transaction was officially implemented in China s capital market at the end of March 2010, and it is a landmark event in China.On March 31, 2010, China officially relaxed short-selling controls, marking the era of China s capital market entering bilateral transactions.This paper take the data of A-share Listed companies in China as a sample to examine the impact of the liberalization of short selling on managers opportunistic behavior in innovative investment. The main conclusions of this paper are as follows: (1) There is a positive correlation between the short selling mechanism and the innovation input of enterprises, that is, the introduction of short selling mechanism has a positive incentive effect on the innovation input of enterprises. (2) Further, the impact of the short selling mechanism on the innovation output of enterprises is verified. It is found that the short selling mechanism is significantly positively correlated with the substantial innovation output of the enterprise; the short selling mechanism is significantly negatively correlated with the non-substantial innovation output of the enterprise; the short selling mechanism is negatively correlated with the total output of the enterprise innovation, but it is not statistically Significant.