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Short Selling and Total-Factor Productivity: Evidence from a Quasi-Natural Experiment in China.
- Source :
- Emerging Markets Finance & Trade; 2024, Vol. 60 Issue 10, p2111-2125, 15p
- Publication Year :
- 2024
-
Abstract
- This study examines the effect of short selling on total-factor productivity (TFP) using China's short-selling pilot program as a quasi-natural experiment. Short-selling significantly improves TFP, and this positive effect is mainly driven by improvements in firms' innovation ability and resource-allocation efficiency. The results are robust to potential endogeneity using propensity-score matching, a placebo test, and exogenous shocks. Further, the positive effect is more pronounced when external governance mechanisms (i.e. market competition and institutional investor supervision) are weak. [ABSTRACT FROM AUTHOR]
Details
- Language :
- English
- ISSN :
- 1540496X
- Volume :
- 60
- Issue :
- 10
- Database :
- Complementary Index
- Journal :
- Emerging Markets Finance & Trade
- Publication Type :
- Academic Journal
- Accession number :
- 178807935
- Full Text :
- https://doi.org/10.1080/1540496X.2023.2284309