The Moderating Effect of Family Business Ownership on the Relationship between Short-Selling Mechanism and Firm Value for Listed Companies in China

This study demonstrates an investigation of the external corporate governance effect short selling mechanisms on firm value in Chinese context. The family businesses is also examined as a moderator relationship between short-selling and value. Using panel data analysis listed companies, this paper tests total sample 22,468 firm-year observations from Shanghai Shenzhen Stock Exchange 2009 to 2019 by applying PSM-DID method order mitigate self-selection endogenous problems caused uniqueness mechanisms. findings suggest that both deregulation propensity can improve Our established ownership weakens with availability short-selling, which indicates have long orientations conduct better practices than non-family business, shows weaker creation China. A robust test alternative measurements conducted validated. provides significant insights for policymakers consider further relax constraints, act effective creation, especially developing countries.