A Study on the Impact of Short Selling Mechanisms on Corporate Innovation

Sihan Xie

doi:10.47297/wspceWSP2516-251928.20250905

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A Study on the Impact of Short Selling Mechanisms on Corporate Innovation

Volume 9, Issue 5

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A Study on the Impact of Short Selling Mechanisms on Corporate Innovation
A Study on the Impact of Short Selling Mechanisms on Corporate Innovation
International College, East China Jiaotong University, Nanchang, Jiangxi, 330000, China
Vol. 9, Issue 5, Pages: 147-152(2025)
Published：30 October 2025
DOI：10.47297/wspceWSP2516-251928.20250905
Accepted：

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Xie Sihan.A Study on the Impact of Short Selling Mechanisms on Corporate Innovation[J].Creative Economy,2025,09(05):147-152.
DOI：

Xie Sihan.A Study on the Impact of Short Selling Mechanisms on Corporate Innovation[J].Creative Economy,2025,09(05):147-152. DOI： 10.47297/wspceWSP2516-251928.20250905.

摘要

Abstract

This study examines the impact of short-selling mechanisms on corporate innovation

focusing on listed companies in China's A-share market. It constructs a theoretical framework through two pathways: financing constraints and governance oversight. Empirical analysis is conducted against the backdrop of short-selling regulations implemented between 2007 and 2022. Results indicate that short-selling pressure significantly suppresses corporate R&D expenditure

reflecting a financing constraint effect. Concurrently

it drives increases in patent citation frequency and the proportion of invention patents

demonstrating that governance oversight can enhance innovation quality. The intensity of these effects varies with property rights characteristics and regional marketisation levels

with non-state-owned enterprises and highly marketised regions exhibiting more pronounced quality enhancement. Robustness tests further validate the findings. The research concludes that short-selling mechanisms exert dual functions in market oversight and corporate behaviour regulation

offering practical implications for capital market institutional design and corporate innovation strategies.

关键词

Keywords

references

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