Investor Sentiment On The Impact Of Corporate Investment Behavior

The investment behavior of a company is directly related to its healthy development,and the distortion of investment behavior will lead to very serious consequences.It is obvious that the traditional investment theory with the assumption of "rational man" can not meet the actual situation to explain this phenomenon.Since neither investors nor managers can maintain absolute rationality all the time,all kinds of psychological deviations arising from this cognition and decision-making will have different degrees of influence on the process and results of the company's investment decision-making.It has become a hot topic of behavioral finance that studying the influence of bounded rational participants on the investment behavior of the company.However,most of the existing studies focus on the irrationality of a single subject,ignoring the coexistence of investor sentiment and manager irrationality.Therefore,it is a problem to be further studied to bring their bounded rationality into the unified discussion system.On the basis of reviewing and summarizing the existing literature,this paper discusses and analyzes the influence of psychology and social behavioral theory on the company's investment when investors' emotions and managers' overconfidence coexist,and proposes the corresponding hypothesis.The selected Chinese A-share listed companies from 2013 to 2017 were selected as samples for empirical research to test the mediating effect of overconfidence of managers on the impact of investor sentiment on corporate investment behavior.Deeply study the mechanism of the influence of investor sentiment and manager overconfidence on corporate investment behavior.Through the empirical conclusion,investor sentiment to the company investment behavior and managers overconfidence has significant positive influence.In addition to "equity financing channels" and "rational cater to channel",the influence on corporation investment behavior through the third channel-managers overconfidence as an intermediary to achieve.As an intermediary,the overconfidence of managers is involved in the whole influencing process.Finally,corresponding policy suggestions are put forward according to this special intermediary channel to curb the negative impact of investor sentiment and managers'overconfidence on the company's investment behavior and avoid the risk brought by the irrational decision-making subject.