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The Information Governance Effects of Margin-trading and Short-selling
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TitleThe Information Governance Effects of Margin-trading and Short-selling  
AuthorLi Zhisheng,Ma Weili,Li Hao and Lin Bingxuan  
OrganizationZhongnan University of Economics and Law; University of Rhode Island 
Key WordsMargin-trading and short-selling; Information disclosure; Management forecast; Analyst forecast 
AbstractThis paper investigates the information governance effects of margin-trading and short-selling (MTSS) from the perspective of management earning forecast quality and analyst forecast accuracy using the data of the Chinese stock market from 2009 to 2014. We find that the MTSS have both internal and external information governance effects. Firstly, we show that the introduction of the MTSS significantly improves the quality of management disclosure in terms of accuracy, timeliness and initiative of management earning forecast. Secondly, the introduction of the MTSS significantly decreases the error and dispersion analyst forecast. Furthermore, our results also suggest that the internal governance effect plays a relatively more fundamental intermediary role, and the MTSS affects the analyst forecast accuracy through the improvement of the management disclosure quality. 
Serial NumberWP1230 
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