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https://ruomo.lib.uom.gr/handle/7000/1773
Title: | The impact of margin trading and short selling on the investment-to-price sensitivity. Evidence from China |
Authors: | Dasilas, Apostolos |
Type: | Article |
Subjects: | FRASCATI::Social sciences::Economics and Business::Finance |
Keywords: | Margin trading Short selling Investment sensitivity Liquidity Institutional shareholdings |
Issue Date: | Nov-2022 |
Publisher: | Elsevier |
Source: | International Review of Financial Analysis |
Volume: | 84 |
First Page: | 102413 |
Abstract: | Employing a database of seven successive short-selling and margin trading ban lifts in the Chinese stock markets during the period 2010–2020, I investigate the impact of leveraged trading transactions on the investment-to-price sensitivity. I also examine whether stock liquidity and institutional shareholdings affect the investment sensitivity subsequent to the lift of short-selling and margin trading constraints. The results from the panel data regression analysis show that lifting bans lead to less corporate investment and a decrease of the investment-to-price sensitivity between 0.29% and 0.44%. Moreover, the regression results reveal that the investment-to-price sensitivity is stronger for more liquid stocks, while the proportion of institutional shareholdings does not affect significantly the corporate investment sensitivity. |
URI: | https://doi.org/10.1016/j.irfa.2022.102413 https://ruomo.lib.uom.gr/handle/7000/1773 |
ISSN: | 1057-5219 |
Other Identifiers: | 10.1016/j.irfa.2022.102413 |
Appears in Collections: | Department of Applied Informatics |
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The impact of margin trading and short selling on the investment-to-price sensitivity. Evidence from China.pdf Until 2024-10-23 | 607,99 kB | Adobe PDF | View/Open Request a copy |
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