Footnote:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments May 29, 2019 erstellt
Description:
Abstract: The short-selling mechanism is an important decision to improve the efficiency of the capital market. China began implementing the short-selling policy in 2010. This paper selects the sample of all A-board listed companies from 2007 to 2016. By comparing the cash holdings of the enterprises that have not joined the short selling policy, it is found that the cash holdings of the enterprises participating in the short selling policy are significantly lower than those without the short selling policy. It is also found that this effect has different effects on enterprises with different characteristics. For enterprises with worse internal governance before participating in the short selling mechanism, the effect of cash holdings reduction is more obvious. Secondly, the effect of the reduction on cash holdings is only significant in the sample group with smaller financing constraints. Finally, in areas with low market level, the short selling policy does not significantly reduce the amount of cash holdings, but in higher market areas, this effect is more significant