The Impact of Short-Selling Mechanism on Corporate Information Disclosure Quality

Yiting Xue

doi:10.6981/FEM.202510_6(10).0005

The Impact of Short-Selling Mechanism on Corporate Information Disclosure Quality

Yiting Xue

Frontiers in Economics and Management, (2025), Vol.6, No.10, pp.47-57

Published: October 15, 2025

DOI: 10.6981/FEM.202510_6(10).0005

PDF: Download Full Text PDF

Abstract

In this study, we selected A-share listed companies from 2010–2024, empirically examining the impact of short-selling mechanism introduction on their disclosure quality. Post-introduction, disclosure quality significantly improved. For robustness, we excluded special-year samples and used year-end ETF holdings/tradable shares ratio as instrumental variable in regression. Even under stricter tests, conclusions remained: short-selling introduction positively affects disclosure quality. This study confirms allowing short-selling effectively promotes listed firms to enhance disclosure transparency and quality.

Keywords: Short-selling Mechanism; Information Disclosure; Difference-in-Differences.

APA Citation: Yiting Xue (2025). The Impact of Short-Selling Mechanism on Corporate Information Disclosure Quality. Frontiers in Economics and Management, 6(10), 47-57. https://doi.org/10.6981/FEM.202510_6(10).0005

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