Relaxation of Short-Selling Constraints and Innovation Investments of Energy Industry in China

The purpose of this research is to determine the effect short-selling restrictions on corporate innovation investments China's publicly traded energy businesses. According external governance theory, it predicted that deregulation short selling serves as a monitoring role for businesses' investments, which are particularly vulnerable efficiency issues. Between 2010 and 2018, multiple linear regression undertaken panel data set Chinese 64-listed companies. descriptive data, average investment businesses 2.24%, indicating low level in sector. findings demonstrate easing limitations may benefit innovative activity. outcomes study indicate financial officials should explore further loosening restrictions, might sectors business highly dependent technological practices performance.