Research On The Influence Of Investor Sentiment And Managerial Overconfidence On The Capital Structure Of Listed Companies

In modern corporate finance,the capital structure has always been a research hotspot.Research on the company's capital structure not only affects the optimization of the company's capital structure,but also affects the choice of the company's financing methods.At the same time,it has a major impact on the development of the market and even on the development of the entire economy.Many scholars in Western developed countries have conducted in-depth research on capital structure,but they are mainly based on the market's effectiveness,research on the company's own factors,and put forward the famous capital structure model(MM theory).For our country,although the market is getting mature,there are still many problems.Investors still rely on the majority of investors,blind followers of investors,imperfect market systems,and lags in the transmission of market information.It is perfectly suitable to study the capital structure of our company.Scholars at home and abroad have found that when the market is not effective,the stock price cannot correctly reflect the relevant information in the market.When investors are irrational,the market price of the company will deviate from the true value of the company,which will cause the market to mispricing.With the increasingly rich knowledge and experience of company managers,the influence of managers' overconfidence on the company is increasingly being valued by scholars.China's stock market is maturing,and governance and supervision are gradually improving.In China's stock market,the governance of listed companies has been gradually improved.Today,with information developed,information of listed companies is gradually transparent,information asymmetry is weakening,investor sentiment and management.Overconfidence has also become increasingly prominent for listed companies.Therefore,it is necessary to study the influence of investor sentiment and manager overconfidence on the capital structure of listed companies in China.Based on this,this paper studies the influence of investor sentiment and manager overconfidence on capital structure from the perspective of behavioral finance.Through the introduction of the background,the combing of the literature and the summarization,this paper theoretically analyzes the influence of investor sentiment and overconfidence of managers on the capital structure;the influence of investor sentiment on the capital structure mainly includes the effect path and the impact way.The impact of managers' overconfidence on capital structure includes overestimating investment ability,overestimating company value and underestimating risks.Managers' overconfidence has a cross-effect with investor sentiment,and puts forward assumptions to build hypothesis models.This paper selects data from 2007-2016 to study the hypothesis.After sorting out the data through excel,select five variables including consumerconfidence index,transaction size,turnover,new account opening,and price-earnings ratio,and construct the investment through principal component analysis.Sentiment index;judge whether managers are overconfident by whether managers increase holdings of the company's stock;select asset-liability ratio to measure capital structure;and through panel data model,find that investor sentiment negatively relates to capital structure;Overconfidence is positively correlated with the capital structure;after joining the two items,it is found that overconfidence of managers can weaken the influence of investor sentiment on capital structure.Finally,this article summarizes the research conclusions and gives recommendations.