| A large number of economy historical facts made clear that the hypotheses of “Efficient Market” and “Economic Man” of Traditional Finance theory exist deficiencies to a certain extent.While Behavioral Finance theory found that investors in the market are not completely rational by means of taking human emotion and behavior feature into consideration,these irrational factors would have great influence on security prices and such influence is systematic,which terms as investor sentiment.Because of a great quantity existence of investor sentiment makes security prices often away from its intrinsic value,as a result,would affect micro firm investment decisions.Based on understanding of relative literature of domestic and foreign,this article takes the view of Catering Channel which investor sentiment affects firm investment level as starting point,chooses 904 A share listed companies of China between 2004 and 2013 as research sample,uses the daily average turnover rate of circulation stocks of last year as proxy variable of investor sentiment,then constructs empirical model in view of Catering Channel and tests the impact of investor sentiment on firm investment level and whether the differences of corporate governance mechanism will have an effect on inclination of firm investment catering sentiment.The paper includes four chapters:The first chapter is introduction,this part raises research background and importance and reviews relative literature of domestic and foreign research,moreover,briefly introduces research content,technical route,method and innovation points as well.The second chapter is relevant theories of corporate investment based on Behavioral Finance.Firstly,this part defines the concept of investor sentiment and firm investment.Secondly,introduces theoretical basis of Behavior Finance and research on firm investment behavior from this aspect.Lastly,elaborates the research situation of Catering Theory on firm investment and analyse the condition of firm investment before and after the Financial Crisis.The third chapter is the main part of this study,which is the empirical analysis that investor sentiment affects firm investment. First of all, through relevant theoretical analysis,this part presents 5 hypotheses from sentiment affect investment level and different corporate governance quality may have an effect on inclination of firm investment catering sentiment two aspects to be tested.Next is research design,which illustrates selection of research sample and source of data,and determines the proxy variable for investor sentiment.Then,sets empirical model in view of Catering Channel and defines variables in the model.Lastly,displays the empirical testing and analysis of outcome,which involves descriptive statistics of main variables in the model and regression analysis that sentiment affects investment level and different corporate governance mechanism may have an effect on inclination of firm investment catering sentiment two aspects according to regression model to examine the hypotheses.The fourth chapter is research conclusions and further expectations.This part summarizes conclusions which is made by empirical testing of previous chapter,at the same time,points out research limitations and expectations for further research direction.The results of empirical research show that:(1)Firm investment level and investor sentiment has an obvious positive correlation,and governors cater sentiment mostly by investment in fixed assets rather than long-term equity investment;(2)The influence of investment sentiment on firm investment has a significant difference between the period of Financial Crisis occurrence and other time,and during Financial Crisis,inclination of firm investment catering sentiment is more evident;(3)The inclination of firm investment catering sentiment has a significant diversity on account of different corporate excitation mechanism,while supervisery mechanism has no effective function of adjustment on inclination of firm investment catering sentiment. |
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