Short-Selling and Financial Performance of SMEs in China: The Mediating Role of CSR Performance

The aim of this study is to examine the effect short-selling deregulation on financial performance SMEs in China. external governance role also tested by adopting corporate social responsibility (CSR) as mediating effect. This investigates a panel data analysis with sample 5038 firm-years listed Shenzhen Stock Exchange from 2010 2019. PSM-DID method adopted alleviate self-selection and endogenous problems observe comparable pure deregulation, while mediation test conducted based Baron Kenny’s model. finding showed that existence could enhance firm CSR position their relationship. In addition, further revealed more pronounced for family businesses firms high real threats. robust alternative measurements valid. provides insights policymakers consider ban lifting executives practice activities improve performance. Limitations implications are discussed.