Margin trading, short selling, and bond yield spread

作     者：Kaijuan Gao Wanfa Lin 

作者机构：Hunan University Wuhan University 

出 版 物：《China Journal of Accounting Research》 (中国会计学刊（英文版）)

年 卷 期：2018年第11卷第1期

页      面：51-70页

学科分类：12[管理学] 02[经济学] 0202[经济学-应用经济学] 1201[管理学-管理科学与工程(可授管理学、工学学位)] 020204[经济学-金融学（含∶保险学）] 

基　　金：financial support from the National Science Foundation of China (Project No. 71602148) the MOE (Ministry of Education, China) Project of Humanities and Social Sciences (Project No. 16YJC630065) the Fundamental Research Funds for the Central Universities (Project No. 531107051035) 

主　　题：Margin trading Short selling Bond yield spread Information spillover 

摘      要：Using a quasi-natural experiment, this study examines the effects of margin trading and short selling on bond yield spread in China. It finds that both margin trading and short selling can reduce bond yield spread. Additionally, it finds that margin trading lowers firms debt ratios and increases their credit ratings, which explains the reduced spread. In other words, margin trading can impact investors decisions by revealing positive information about a *** finding is that short selling lowers the bond yield spread by decreasing earnings management, suggesting that short selling has an impact on investors decisions through its effect on corporate governance. Our results suggest that margin trading transmits positive information and short selling impacts firms policies. These results provide support for future regulations of margin trading and short selling.