Invstors Sentiment And The Discount Of Directinal Issuance Of Shares:Empirical Evidence Based On Text Mining

Directed issuance of stocks refers to the behavior of listed companies to raise funds for non-public issuance of stocks to specific investors.Compared with the public issuance of stocks,non-public issuance of stocks has the advantages of less restriction,low cost,flexible subscription,and so on.Therefore,more and more listed companies favor non-public issuance of stocks.The number of companies that refinanced from 2010 to 2016 was 8,080.The proportion of companies that refinanced through non-public issuance reached as high as 89.86%,and the proportion of the total amount raised was 91.48%.Therefore,the number of private placements is increased.It is increasingly important for listed companies in China.For the study of this topic,most domestic scholars currently based on the structured data disclosed by listed companies.However,with the popularity of the Internet and the development of text mining technologies,there are many information related to stock prices on the Internet platform.Based on the theory of behavioral finance,this paper intends to study the phenomenon of discounted private placement from a new perspective,that is,from investor entities rather than objective events.In the era of big data,data mining can make full use of data.Therefore,this paper intends to capture and deal with the opinions expressed by shareholders in stocks,and convert unstructured data into structured data to measure the sentiments of investors.In order to analyze the relationship between the investor's sentiment and the discounted phenomenon of the private placement of stocks.Based on the existing research,this study selected a sample of listed companies with tactically issued shares of all A-shares listed in China's Shanghai and Shenzhen stock markets from 2014 to 2016 as a sample of the study.The main problems are first,investors whether the sentiment will affect the discount rate of the private placement is different from most studies in the country.This paper constructs investor sentiment indicators through text analysis rather than directly through the financial data and transaction data of listed companies.Second,analysis if investor sentiment can significantly affect the discount rate of directional stocks,whether investor sentiment is directly affected by the discount rate or through the wrong pricing of the market will have an effect on the discount rate.Through theoretical analysis and empirical research,this paper finds that investor sentiment has a significant effect on the discount rate of directional stock offerings.The more positive the investor sentiment,the greater the discount rate of directional stock offerings;the market's erroneous pricing is also significant for directional stock offerings.As a result,the greater the level of market mispricing,the greater the discount rate of privately issued stocks;however,when investor sentiment and market mispricing are in the same model,investor sentiment has no effect on the discount rate of private placements.The erroneous pricing is significant,that is to say,investor sentiment influences the market's mispricing and then affects the discount rate of directional stocks.The market's erroneous pricing is an intermediary variable in which investors' sentiment influences the directional increase in stock discount rate.