From the perspective of China’s capital market securities loan policy launched in 2010, this paper empirically discusses the relationship between short selling of securities loan and information disclosure violations of listed companies. The research finds that short selling reduces the tendency and frequency of information disclosure violations of listed companies, indicating that short selling has a good corporate governance effect. The mechanism test shows that short selling reduces the tendency and frequency of information disclosure violations of listed companies by improving the quality of internal control of enterprises, reducing the motivation of major shareholders“tunneling”and reducing agency costs. Further research shows that short selling has a significant restraining effect on listed companies’ information disclosure violations only in groups with a higher proportion of institutional investors and a higher external audit fees, indicating that short selling has complementary effects with institutional investors and external audit.