The Research On Investor Sentiment And Investment Behavior Of Listed Companies

There are two hypotheses in the traditional finance theory:market hypothesis and "completely rational person" hypothesis. However, since the 1980s, a large number of stock market anomalies appeared and these anomalies can't be explained by the traditional finance theory, behavioral finance become a new hotspot. In the behavioral finance theory, investors are not completely rational. The deviation of the value of stock price caused by the irrational behavior of investors called "Investor Sentiment". The change of investor sentiment can affect the stock price systematically, and in the further affect the investment decision of the listed companies.Based on the above background, this paper chose the data of the A share listed manufacturing companies in the Shanghai and Shenzhen stock markets of China as research sample and examined the relationship between investor sentiment and investment level in the listed companies by empirical research using previous momentum index as proxy variable of the investor sentiment from the behavior finance aspect considering Tobin's Q,cash flow level,debt-to-assets ratio and the size of corporation at the same time.Research results indicated:(1)A positive correlation existed between investment level in the listed companies and investor sentiment; the listed companies cater to investor sentiment by investing fixed assets.(2) A significant positive correlation existed between investment level and investor sentiment in the companies which has high investment level, but the relationship is not significant in the companies which has low investment level.(3)The catering extent of the listed companies when investor sentiment is optimistic is higher than the catering extent when investor sentiment is pessimistic.