The Research On Investor Sentiment And Investment Behavior Of Corporate

Based on "Efficient Market Hypothesis" and "Hypothesis of Rational Man", the traditional finance theory holds that the stock prices can fully reflect the true value of the enterprise. Throughout the economy historical facts, irrational behavior of investors in the capital market often cause stock prices to significantly deviate from true value and then probably have a real effect on the entity enterprises’ physical investment. Traditional finance theory is indecipherable to this. Based on this phenomenon, from the perspective of the behavioral finance, the scholars consider the assumption of irrational investors to study the anomalies in the capital markets.Emotional contagion theory holds that the individual emotion can affect the thought, behavior and emotion of other individuals. As the two large economic entities, investor sentiment will affect the management behavior. Facing the changing of securities market and the drastic fluctuations, the managers of enterprise show the different abilities to afford the external crisis and decide to invest. The fact that irrational behavior of managers in studying the effect of investor sentiment to corporate investment behavior makes the circle of theory and practice pay more attention.Based on the above analyses, we take the limited rational of external investors and managers of enterprises into account together and deeply think about the problem-how the inside and outside factors influent investment. Taking the investor sentiment, managers overconfidence and corporate investment behavior into the same research framework, we will explore how the investor sentiment "shape" managers overconfidence and indirectly affects the corporate investment behavior, and we will put forward the third path which investor sentiment affects business investment, defined as "emotional contagion channels", be different from the "equity financing channels" and "rational cater to channel". Then, with the sensitivity measuring method, we also measure the degree of investor sentiment affects of corporate investment in "emotional contagion channels”. Finally, considering the phenomenon of internal control in our country’s corporate, the paper will explore how the process of separation of two staff adjust enterprise management behavior under the investor sentiment affect investment behavior of non rational behavior.Through the theoretical analysis and empirical test, the paper concludes the following main research:(1) Under the conditions of irrational management, investor sentiment can shape the managerial overconfidence and then indirectly affect investment behavior. Managerial emotion plays an intermediary effect. It also proves there is an indirect influence path on the mechanism of investor sentiment affecting corporate investment.(2) The more managerial overconfidence is, the more effective investor sentiment affecting corporate investment.(3) Taking the universal phenomenon of internal control in corporate into consideration, the two job separation of chairman and general manager(CEO)can restrain the managerial overconfidence, and is also able to regulate in "emotional contagion channels".