| As an important way to obtain cash and as the power source to expand and develop of the enterprise, investment has been subject to corporate managers’ attention. Reasonable and effective investment enable enterprises to decentralize market risks while obtain the expected return and enable enterprises to have certain advantages in the expansion of business development,efficiency investments are likely to undermine the competitive advantage even damage the future development of enterprises instead. But in fact, there is the widespread inefficiency investment phenomenon in China’s enterprises.The phenomenon may lead to enterprises missed business opportunities, to bring huge losses, and even cause the waste of social resources, damage the macroeconomic development.In the background of that the traditional finance theory cannot explain some anomalies appear in the capital market,Scholars began to relax the "rational economic man" hypothesis and sought whether investor sentiment influence and how it affects the behavior of investment decision from the perspective of social psychology, launched a series of exploration and research, and has made some progress. But the existing literature based on behavioral finance perspective often ignored the fact that investors and managers are limited rational, most of them study the influence on investment behavior single from the perspective in investor sentiment or managerial overconfidence. In terms of enterprise investment decision, on the one hand, the corporate investment behavior was affected by internal equity or debt financing environment change by investor sentiment in the external environment, affected by managers to cater to the mechanism of action, on the other hand, but also are influenced by management subjective psychological factors, especially was the impact of managerial overconfidence. As one of ingrained psychological characteristics for overconfidence managers, it has an important impact on enterprise investment decision on their ability to overpricing, excessive overestimation of project success probability as well as the project proceeds over optimistic psychological tendency to make its investment behavior. Therefore, overconfident managers tend to expand investment in the same internal and external information.Based on this, this paper used the methods of combination of induction and deduction and statistical analysis, selected2010-2013in Shanghai and Shenzhen A shares of listing corporation as the research sample, studied the relationship between investor sentiment and corporate inefficient investment, and examined the regulation effect which managerial overconfidence played. Specifically, in the induction and deduction, firstly, this paper summarized the previous studies on related theories in investor sentiment, managerial overconfidence and corporate investment efficiency aspects, and explained investor sentiment and managerial overconfidence influence the inefficiency of investment by financing constraints, rational catering theory, and then put forward the hypothesis of this study. In the statistical analysis, based on the regression model, this paper tested the effect of investor sentiment on the inefficient investment, and the regulation effect which managerial overconfidence played. Through empirical testing, this paper found that the low or high investor sentiment affected the investor sentiment is not the same. Specifically, in high investor spirits, there was a positive correlation between investor sentiment and over-investment, while in low investor spirits; there was a negative correlation between investor sentiment and under-investment. In high investor sentiment, managerial overconfidence exacerbated over-investment which investor sentiment had brought. In low investor sentiment, managerial overconfidence could alleviate under-investment which investor sentiment had brought instead. Finally, this paper pointed out the shortages, and prospected the follow-up study development in this area. |
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