Proceedings of the 2019 International Conference on Education Innovation and Economic Management (ICEIEM 2019)

Research on the Effect of Margin Trading on Pricing in Stock Market

Authors
Yanliang Zhang, Wenwen Wang, Leya Zhang
Corresponding Author
Yanliang Zhang
Available Online August 2019.
DOI
https://doi.org/10.2991/iceiem-19.2019.20How to use a DOI?
Keywords
Margin Trading, Pricing, Difference-in-Difference Model
Abstract
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.
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This is an open access article distributed under the CC BY-NC license.

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Proceedings
2019 International Conference on Education Innovation and Economic Management (ICEIEM 2019)
Part of series
Advances in Social Science, Education and Humanities Research
Publication Date
August 2019
ISBN
978-94-6252-779-9
ISSN
2352-5398
DOI
https://doi.org/10.2991/iceiem-19.2019.20How to use a DOI?
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  -