The Influence Of Investor Sentiment On The Non-efficiency Investment Of Enterprises

The level of enterprises investment efficiency is related to the level of market competitiveness and the efficiency of resource allocation.Inefficient investment is widespread in Chinese listed companies.One of the important reasons for the inefficient investment of enterprises is the external investor sentiment.The impact of investor sentiment on corporate inefficient investment is mainly caused by problems such as information asymmetry and agency.The purpose of the implementation of the internal control system is to ensure that the company achieves its business objectives,financial reporting objectives and compliance objectives.High-quality internal control can improve the transparency of company information and weaken the problem of principal-agent.Therefore,internal control plays an important role in improving the efficiency of enterprise investment.This paper studies the relationship between investor sentiment and corporate inefficient investment based on the perspective of internal control,in order to explore ways to correct the adverse effects of investor sentiment on non-efficiency investment.Through the combing of the existing literature,research examines the impact of investor sentiment on the non-efficiency investment,but there is little research on how to improve the influence of investor sentiment on non-efficiency investment based on “catering the channel” as the entry point.There is no substantial breakthrough in the research on the relationship between internal control and corporate inefficient investment.In this respect,based on behavioral finance theory,principal-agent theory and information asymmetry theory,this paper introduces internal control into the research system of investor sentiment and enterprise inefficient investment relationship.The paper analyzes the possible role of internal control in the impact of investor sentiment on the inefficient investment,establishes a multiple linear regression model,and selects five single indicators such as the transaction volume,IPO first-day earnings,new investor accounts,and consumer confidence index to synthesize a comprehensive investor sentiment measurement CICSIr using principal component analysis,used to measure investor sentiment,and use Richardson's investment efficiency model to measure corporate inefficient investment value.On this basis,the multivariate linear regression model is used to test the correlation between investor sentiment and corporate inefficient investment,attaining the investor sentiment is positively correlated with corporate overinvestment,but negatively correlated with underinvestment;further introduce the interaction between internal control index and investor sentiment,and test the possible role of internal control in the impact of investor sentiment on corporate inefficient investment.The research of the thesis shows that internal control can correct the non-efficiency investment phenomenon caused by investor sentiment.Therefore,enterprises can weaken the interference of investor sentiment on the investment efficiency by paying attention to the development of institutional investors,strengthening the education of individual investors,improving the internal control system and strengthening the internal control of enterprises.