Empirical Research On The Impact Of Investor Sentiment On Chinese Listed Companies’ Investment Behavior

With the constant rise of behavioral finance, the scholars have joined in the research of behavioral finance and behavioral corporate finance. And the research of investor sentiment to the enterprise investment behavior is a very important research. Investor sentiment is the investors’ investing emotions such as fear, greed, fever and so on. Investor sentiment will affect the company’s investment behavior, and then affect the efficiency of the company’s investment. The research can help the managers of listed companies to understand the market sentiment influence on the corporate investment and financing decisions so that it can promote the managers to make rational investment decision. At the same time, this research can provide the regulation basis for the securities regulators.It can make the structure of our country stock market investors more optimistic. With the standard securities market information disclosure system and development of institutional investors, the irrational behavior of investors will be reduced.On the research background and research significance, this paper studies are according to the following train of thought. First of all, this paper tells what is the investor sentiment and how the investor sentiment influence the enterprise investment behavior.The investor sentiment is mainly through the equity financing channels and the catering channels to affect the investment behavior of the enterprise. Secondly, we use principal component analysis to build a comprehensive index to measure the investor sentiment.We mainly use the consumer confidence index, IPO first-day returns, new shares’ rate,turnover rate and the enclosed fund discount rate these five indexes to process the comprehensive index to measure investor sentiment. Once again, the empirical test part is mainly divided into two parts. The first part, with building investor sentiment index for the independent variable, investment behavior for the dependent variable.We carry on the corresponding empirical analysis, it is concluded that the investor sentiment and the enterprise investment behavior is a positive correlation between the relationship. And basing on the characteristics of different enterprise, the investment behavior of listed companies,we carry on the empirical research, found that investor sentiment’s influence onthe investment behavior of companies with different enterprise characteristics are different.The second part is that the building the investor sentiment for the independent variable and the corporate investment efficiency for the dependent variable, we carry on the empirical analysis. It is concluded that the investor sentiment is positively correlated with business investment and is negatively correlated with insufficient business investment. Finally,according to the empirical conclusions, this paper put forward the corresponding suggestions and solutions.