Open AccessThe Impact of Margin Trading on Stock Volatility: Based from 2014 to 2016 Shanghai and Shenzhen 300 Index
Author(s) -
Chuanyang Gong
Publication year - 2021
Publication title -
international journal of business and management
Language(s) - English
Resource type - Journals
eISSN - 1833-8119
pISSN - 1833-3850
DOI - 10.5539/ijbm.v16n7p32
Subject(s) - volatility (finance) , granger causality , econometrics , stock market , economics , financial economics , stock (firearms) , stock market index , margin (machine learning) , index (typography) , monetary economics , geography , computer science , context (archaeology) , archaeology , machine learning , world wide web
The paper study the impact of margin trading on the volatility of the stock market, We selected 469 observation values among the daily Shanghai and Shenzhen 300 index from May 2014 to March 2016. the Granger causality test results are obtained for the model. Empirically study shows that one of the factors affecting stock price fluctuation does include margin trading business, and shows a negative correlation, which plays a more stable role in the stock market.