关键词: 融资融券, 产品市场竞争, 企业绩效

Abstract: This paper studies the joint impact of margin trading and securities lending on product market competitionTheoretical analysis and empirical studies show that firms have become more aggressive in product market competition since their stocks were eligible for margin trading and securities lending, but their overall performance has declined accordinglyThis paper also finds that the trading mechanism mainly affects companies with low stock price efficiency or high intensity of margin tradingThe results imply that with the unbalanced development of margin trading and securities lending, good news from the product market tends to be over rewarded by the stock market, which induces firms to over react in product market competitionHowever, the improvement of stock price efficiency can be helpful to alleviate the above problems

Key words:  , margin trading and securities lending, product market competition, firm performance