Investor Attention,Investor Sentiment And Pricing Efficiency Of Secondary Market

The "Administrative Measures for the Issuance of Securities by Listed Companies" is an important milestone in the gradual improvement of the refinancing approach of China's securities market,since policy promulgated in 2006,private placement for the issue of object not openly and limited,together with the issue of the securities and futures commission to give condition is relatively loose,the listed company gradually will consider as important channels of its refinancing even is preferred.China's securities market is developing rapidly,and financial innovation has also continued to deepen.On February 17,2017,the Securities Regulatory Commission announced that the adjustment of the "Implementation Rules for Listed Companies' Non-Public Issuance of Shares" is a more standardized and orderly management by the regulatory authorities on the targeted issuance market.Mark,the research on private placements has been enriched,mainly focusing on the private placement pricing,short-term announcement effects,long-term wealth effects,and benefits transmission.This paper adopts a combination of normative research and empirical research.Based on the existing literature review,concept definition and theoretical analysis,first,based on the investor's bounded rationality hypothesis,noise trading theory,price pressure hypothesis and information asymmetry theory,Individual investors' decision-making behaviors based on information cognition and processing models and the impact of decisions on the stock market are logically combed to form the basis for investors to pay attention to the mechanism that triggers the market's stock trading volume and price changes.Secondly,the author puts forward relevant hypotheses on the role of investor sentiment as an intermediary variable in the relationship of �investor attention�the secondary market pricing efficiency of private placements�,and uses A-share listed companies that issue related private placements as research samples to invest in The mediator role of investor sentiment in the relationship between investor concern and secondary market pricing efficiency is empirically analyzed,and the role of market sentiment in regulating the relationship between investor concern and secondary market pricing efficiency is further explored.Finally,combined with the research conclusions,from the perspective of targeted market issuance,corporate and individual investors,this article discusses countermeasures and suggestions to improve the pricing efficiency of the securities market.This paper selects companies that conduct private placements from 2011 to 2018 as research samples,and uses empirical analysis methods such as descriptive statistics,event research,and multiple regression to study the pricing efficiency of private placements in the secondary market.The research finds that:(1)Investors pay attention to adversely affecting the value efficiency of transaction value pricing and positively affect the efficiency of intrinsic value pricing,that is,the stronger the investor's focus on private placement of stocks,the lower the transaction value pricing efficiency,and the investor's focus on private placement of stocks.The stronger the degree of attention,the higher the efficiency of intrinsic value pricing.(2)Investor attention has a significant positive effect on investor sentiment,that is,an increase in investor attention will significantly promote investor sentiment in the market.(3)Investor sentiment plays a part of the intermediary effect in the mechanism of investor attention and the efficiency of pricing in the secondary market: On the one hand,the attention of individual investors will increase the irrationality of investors in the secondary market and enhance the process of targeted issuance.The investor sentiment in the market has caused the market's price of the directional additional issue of stocks to deviate from the market pricing level,which has reduced the value of transaction value pricing.On the other hand,investors have focused on reducing the degree of asymmetric information in the stock market.Investor sentiment in the process has reduced the degree of deviation between secondary market pricing and intrinsic value,thereby improving the efficiency of intrinsic value pricing.(4)The compound market sentiment has a moderating effect on the relationship between investor attention and transaction value pricing efficiency.As the market sentiment intensifies,investors' attention to the reverse effect on transaction value pricing efficiency increases.Based on the above conclusions,this article puts forward the corresponding policy recommendations:(1)From the perspective of the regulatory authority,to prevent purposeful communication in online search and increase supervision to calm down irrational market responses,the purpose is to create a stable and positive market for investors.The investment environment,while reducing the cost of information search,in order to enhance the rationality of individual investors' attention,and play a role of rational attention to alleviate market information asymmetry.(2)From the perspective of a listed company,in the process of refinancing with a private placement,the objectiveness and adequacy of announcement information disclosure will be improved,and on the one hand,it will ensure that market participants(especially individualinvestors as market entities)pass Increasing the level of understanding of the company's fundamentals reduces blindly herd investing behavior.On the other hand,in the case of more rational analysis and decision-making in the market,the stock price of listed companies can be more in line with its true value.(3)From the perspective of individual investors,developing the ability to obtain,judge,and analyze information is conducive to making scientific decisions,avoiding following suits and making decisions from the crowd,and effectively avoiding adverse investment risks and unnecessary economic losses.