Background Characteristics Of Managers,Investor Sentiment And Investment Level Of The Listed Companies

With the emergence of behavioral finance, The efficiency of capital market and rational person hypothesis in modern financial has been questioned. The capital stock market investors because of the influence of their own psychological and emotional will produce irrational behavior, and thus lead to mispricing of stock price. This irrational behavior of investors called the "sentiment" has gradually beginning to attract the attention of researchers.Behavioral finance scholars based on "non-efficient market" and "non-rational investor" hypothesis count the fluctuation of stock price factors as influencing investment change, and pay attention to the impact stock mispricing caused by investor sentiment on corporate investment behavior. Most researchers support the existence of a positive relationship between investor sentiment and the investment level of companies, and managers cater to investor sentiment in making the investment decision. But on the other hand, the listed Corporation’s managers are not completely rational. Research shows that management making the investment decisions under the uncertain conditions are affected by their own characteristics and cognitive bias. Therefore, managers may deviate from the "expected utility maximization" target in the process of investment decisions. The differences in personal background characteristics, such as their educational level, duration, work experience and so on, will cause the differences in the aspects of their cognition, emotions and values and influence the decision-making behavior of managers, so as to affect the company’s investment decisions. Since the upper echelon theory proposed, the academic circles began to pay attention to the impact of management background characteristics on enterprise performance and corporate investment behavior. Since the upper echelon theory proposed, the academic circles began to pay attention to the impact of management background characteristics on enterprise performance and corporate investment behavior. This paper tentatively take management background characteristics as moderating variable into the research framework, and study the relationship between the management characteristics, investor sentiment and investment level. In order to more really, profoundly reflect the effect and mechanism which investor sentiment influence on investment level of companies.Specifically, this paper chose2008-2012the balanced panel data of the A share listed companies from Shanghai and shenzhen stock markets of China as research sample, and draw the following conclusions through the regression analysis:(1) It has a significant positive correlation between investor sentiment and investment level of the listed companies.(2) Managers’age has the reverse regulation on the relationship between investor sentiment and investment level of the listed companies, and managers’age are pure moderating variable.(3) Along with raising the level of management education, the sensitivity between investment level and investor sentiment has reduced,and the education has a reverse regulation as pure moderating variable.(4) Managerial tenure has no significant moderating effect on the relationship between investor sentiment and the investment level of the listed companies.