Research on Risk Management under Short Selling Shocks

Jiaqi Li

doi:10.47297/wspdecWSP2515-797309.20261002

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Research on Risk Management under Short Selling Shocks

Volume 10, Issue 2

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Research on Risk Management under Short Selling Shocks
Research on Risk Management under Short Selling Shocks
Sanda University, Shanghai, 201209, China
Vol. 10, Issue 2, Pages: 42-47(2026)
Published：28 February 2026
DOI：10.47297/wspdecWSP2515-797309.20261002
Accepted：

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Li Jiaqi.Research on Risk Management under Short Selling Shocks[J].Development Economics of China,2026,10(02):42-47.
DOI：

Li Jiaqi.Research on Risk Management under Short Selling Shocks[J].Development Economics of China,2026,10(02):42-47. DOI： 10.47297/wspdecWSP2515-797309.20261002.

摘要

Abstract

Based on the data of listed companies in Shanghai and Shenzhen A-shares from 2008 to 2020 as the research sample

and under the quasi-natural experimental scenario of the gradual expansion of margin trading and short selling

this paper systematically studies the impact of short selling shocks on the decision-making and risk behavior of listed companies in the context of the continuous improvement of the margin trading and short selling system and the mature two-way trading mechanism of the capital market in China. The research results are as follows:Firstly

the net effect of short selling shocks on the risk-taking of enterprises is not significant. The coefficient of the core explanatory variable List fails to pass the significance test in both risk-taking indicators. Multiple robustness tests such as excluding samples in the year of entering the list

excluding the first batch of margin trading targets

and changing the sample interval all support this conclusion. Secondly

the impact of short selling shocks shows significant heterogeneity in terms of property rights. When state-owned enterprises face short selling pressure

their risk-taking level is significantly higher than that of non-state-owned enterprises. Finally

under the impact of short selling shocks

the risk-taking of state-owned enterprises is significantly higher

reflecting the unique effect of the interaction between institutional design and property rights differences

and providing certain policy implications for optimizing the differentiated design of the short selling system.This paper focuses on the domestic securities market and analyzes the impact of the short selling mechanism on corporate risk management from a multi-level and multi-dimensional perspective

reducing limitations. It conducts in-depth research on the impact of short selling shocks on risk-taking of enterprises

using empirical research and the DID model

analyzing the agency costs

enterprise performance

and governance environment. It systematically analyzes the ways

methods

and consequences of the impact of short selling shocks on enterprises. It expands the research boundaries of the short selling mechanism and micro-enterprise risk decision-making

reveals the asymmetric characteristics of the transmission of short selling pressure in the Chinese institutional environment

and provides empirical support and practical implications for listed companies to build a short selling risk response system

regulatory authorities to optimize the design of margin trading and short selling systems

and implement differentiated supervision.

关键词

Keywords

references

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