Investor Sentiment And Enterprise Innovation Investment

Under the background of innovation hot,corporate innovation becomes the focus of the theoretical circle and the academic circle,and the hot topic pursued by investors in the capital market once again.Among them,the innovation of Chinese pharmaceutical manufacturing enterprises attracts more attention than others.The pharmaceutical manufacturing industry is closely related to people's livelihood.However,there are still many problems in this industry,such as the widespread availability of low-quality generic drugs,insufficient effective supply of new drugs,and poor industrial competitiveness.Therefore,the ability of innovation needs to be improved urgently.In addition,the innovation of pharmaceutical industry has some difficult problems,such as large investment,long return cycle and many uncertain factors,so the innovation problem has become one of the important topics urgently to be solved in China.Based on the above background,this paper is based on the existing research results on the factors affecting enterprise innovation investment in financial management and behavioral finance.Firstly,this paper makes a comparative case study of Hengrui Medicine and Xinhe Cheng based on the assumption that investors are not completely rational.Secondly,this paper elaborates the core problem of "how investor sentiment affects enterprise innovation investment" based on the data of Chinese pharmaceutical manufacturing industry.Specifically,this paper takes the value of tobin Q in four basic aspects of the enterprise as the variable representing the investor sentiment of the enterprise,and further analyzes the impact of investor sentiment in the market on the enterprise innovation investment and its mechanism.The research is divided into three parts:(1)Literature review and theoretical analysis.This paper sorts out the research results of domestic and foreign literatures on the influence of investor sentiment on enterprise innovation investment,theoretically analyzes the influence mechanism of investor sentiment on enterprise innovation investment,and establishes a research and analysis framework.(2)Double case study.With the help of case study method,the typical enterprises of Hengrui Medicine and Xinhe Cheng are selected.The effect of investor sentiment change on enterprise innovation input and innovation output is verified through case analysis and case comparison.At the same time,this paper analyzes the reasons of the difference of influence from the three angles of percentage of shares,rational pandering and manager confidence.(3)Industry empirical analysis.The empirical analysis method is adopted and the public data of 66 listed companies in China's pharmaceutical manufacturing industry from 2012 to 2017 are used to calculate the value of the investor sentiment index of each company in the corresponding year.The impact of investor sentiment on the innovation input and innovation output of pharmaceutical manufacturing enterprises is further verified from the industry level.Through the above research and analysis,this paper draws thefollowing conclusions:(1)As far as the individual enterprise is concerned,there are significant differences in the impact of investor sentiment changes on enterprise innovation investment.In the two comparison cases,innovation input of Xinhe Cheng was significantly positively correlated with investor sentiment,its innovation output was significantly negatively correlated with investor sentiment,while innovation input and innovation output of Hengrui Medicine were not significantly correlated with investor sentiment.(2)The shareholding ratio of major shareholders will adjust the impact of investor sentiment on enterprise innovation investment,and the difference in path of enterprise's rational pandering and manager's confidence will also affect the impact of investor sentiment on enterprise innovation investment.The large proportion of shares held by major shareholders of Xinhe Cheng,high ownership concentration,strong effect of equity incentive plan,and managers' confidence is sensitive to investor sentiment,so investor sentiment has a significant impact on the innovation investment of Xinhe Cheng.The major shareholders of Hengrui Medicine have a small proportion of shareholding,a low degree of ownership concentration,a weak effect of equity incentive plan,and managers' confidence is not sensitive to investor sentiment,so investor sentiment has no significant impact on the innovation investment of Hengrui Medicine.(3)From the perspective of industry,the scale of innovation input of Chinese pharmaceutical manufacturing enterprises is significantly positively affected by the change of investor sentiment,that is,with the increase of investment sentiment,the innovation input of enterprises will increase accordingly.On the contrary,as the investment mood is low,the enterprise's innovation input will decrease accordingly;The change of investor sentiment has no significant impact on the output of enterprise innovation.