Investor Sentiment,Managerial Overconfidence,and Corporate Investment Behavior

When the company's investment theory is developing,it has experienced a step by step to relax the premise of the research.The hypothesis of the neoclassical investment theory is people are in the perfect market,if the net present value of the expected income of the project is positive then it can be invested.The theory of information asymmetry holds that the market is not completely effective,and the different participants in the market may have asymmetric information and affect the efficiency of the investment.The principal-agent theory holds that the managers are not completely rational,and they may think more of their own interests rather than the long-term interests of the enterprise.At the same time,many traditional financial theories can't explain the anomalies also let people found that the stock market in the stock price does not reflect the true value of the company,the irrational behavior of investors often market pricing system of the company from its intrinsic value,extensive investor sentiment in recognition of the people.The development of these theories and knowledge has finally promoted the development of behavioral finance.Scholars have gradually introduced investors and managers' irrationality into the research scope when studying corporate investment behavior.The theory of cognitive dissonance and the theory of emotional infection suggest that the thought,behavior and emotion of the individual affect the thought,behavior and emotion of other individuals.As the two main economic actors,investors and managers are closely linked,and the former is bound to play a role in the latter's behavior.Under the influence of stock market change and investor's mood fluctuation,business managers' behaviors are different,and the ability to resist risks and investment decisions are different.Therefore,investment decisions of enterprises will inevitably be influenced by investors and managers.As the most important source of enterprise development,enterprise investment has always been the subject of research by scholars.This paper makes a theoretical analysis on the basis of literature review at home and abroad.Considering the fact that external investors and business managers are limited and rational coexist,this paper chooses the so-called "assembly number" as a bull market,as well as an important energy sector,which is a non-ferrous metal industry,which has great impact on the development of national economy.At the same time,the relevant listed companies in Shanghai and Shenzhen two city 2008-2015 years of data,in-depth study of the internal and external factors is how to influence corporate investment behavior.That is to say,we should include investor sentiment,managerial overconfidence and corporate investment behavior into the same research framework to explore how investor sentiment can affect managers' investment behavior by influencing managerial overconfidence.Based on the theoretical research and empirical research,we get the following conclusion: investor sentiment and managerial overconfidence are positively correlated with the investment behavior of enterprises.Investor sentiment can also indirectly affect the investment behavior of the enterprise by infecting or shaping the overconfidence of the manager.Managerial overconfidence in the influence mechanism plays an intermediary role,the path also shows that investor sentiment in enterprise investment behavior in addition to the "equity financing channels" and "rational catering channel",there are third kinds of influence path--the mediating effect of channel.This provides a useful reference for us to think about the transmission mechanism of stock market sentiment on the impact of real economic development from the micro enterprise perspective.Finally,after proving that investors and managers' irrationality really affect corporate investment behavior,this paper puts forward suggestions from three perspectives,namely,investors,company managers and government,so as to protect the growth of individual investors' income and promote the healthy development of the real economy.