Research on Short-selling Mechanism and Market Impact from the Perspective of Information Disclosure of Listed Companies

Abstract

According to the perspective of information disclosure of listed companies, the "short selling" mechanism means that investors borrow shares and sell them, and then buy them back at a lower price. The research on the influence of "short selling" mechanism on the market is quite controversial. Supporters believe that it helps to correct the overvaluation and bubbles in the market and makes the management of the company more cautious and transparent. However, critics worry that the "short-selling" mechanism may lead to excessive stock price decline and market panic, resulting in loss of investor confidence and increased systemic risks. In addition, some people also pointed out that there is a risk of abuse and manipulation in the "short" mechanism, which may bring unfair blows to the company. This paper finds the relationship between short-selling mechanism and information disclosure of listed companies through case analysis, and studies the role and specific path of short-selling mechanism in improving the quality of information disclosure of listed companies, which has certain reference significance for the innovation of supervision methods to improve the quality of information disclosure in the market.