Research on the Relationship between Short-selling Mechanism and Hollowing-out by Major Shareholders

Abstract

This article selects data from all A-share listed companies on the Shanghai and Shenzhen stock exchanges from 2015 to 2023, and uses regression models to test the relationship between short selling mechanisms and major shareholder hollowing out. Assessment of related-party transactions to evaluate the phenomenon of asset stripping by significant shareholders, a series of possible influencing factors are controlled, and under the calculation of regression model, It has been determined that the short-selling mechanism exhibits a negative correlation with major shareholders, which also proves that the short-selling mechanism is negatively correlated with major shareholders out of it the short-selling mechanism restricts the behavior of large shareholders, and to a certain extent, it plays a role in the short-selling mechanism, which plays a role in the short-selling mechanism mutual the effect of inhibition shows that the implementation of short-selling mechanism in China can play a role in protecting the interests of minority shareholders to a certain extent, and it also provides some theoretical and empirical research for regulatory authorities to promote short-selling mechanism.