Research on the Effect of Margin Trading on Pricing in Stock Market
Yanliang Zhang, Wenwen Wang, Leya Zhang
Available Online August 2019.
- https://doi.org/10.2991/iceiem-19.2019.20How to use a DOI?
- Margin Trading, Pricing, Difference-in-Difference Model
- In order to explore the influence mechanism of margin trading on stock pricing, this paper analyzes the impact of margin trading on China's stock market pricing by analyzing the cross-section data horizontally and constructing a Difference-in-Difference model. The research finds that: (1) Through the horizontal comparison between the target stock and the non-target stock, it is found that the pricing efficiency of the target stock is significantly higher than that of the non-target stock;(2) The effect of margin trading in bear market on stock pricing efficiency is greater than that in bull market; (3) The results of difference-in-difference model show that the target stocks in the experimental period have higher pricing efficiency than non-target stocks, and the stocks increase their pricing efficiency after entering the target pool.
- Open Access
- This is an open access article distributed under the CC BY-NC license.
Cite this article
TY - CONF AU - Yanliang Zhang AU - Wenwen Wang AU - Leya Zhang PY - 2019/08 DA - 2019/08 TI - Research on the Effect of Margin Trading on Pricing in Stock Market BT - 2019 International Conference on Education Innovation and Economic Management (ICEIEM 2019) PB - Atlantis Press SP - 77 EP - 80 SN - 2352-5398 UR - https://doi.org/10.2991/iceiem-19.2019.20 DO - https://doi.org/10.2991/iceiem-19.2019.20 ID - Zhang2019/08 ER -