Research On The Impact Of Investor Sentiment On The Cost Of Corporate Equity Financing

In the Chinese capital market,corporate managers generally choose equity financing for financing,and have a strong preference for equity financing.Among them,the cost of equity financing will not only affect the financing decision of the enterprise,but also have a certain degree of influence on the investment decision of the enterprise.It is a part of the company that is highly concerned about the development of equity financing.In order to explore the factors that affect the cost of equity financing,this article relaxes the "market is completely effective" and "rational person" assumptions in effective market theory,from the perspective of behavioral finance theory,from 2014 to 2018 in China and Shenzhen A shares In the highend equipment manufacturing industry as the research object,the impact of investor sentiment on the cost of corporate equity financing is studied by empirical research methods.The study found that in the high-end equipment manufacturing industry,investor sentiment and corporate equity financing costs show a significant negative correlation,that is,when investor sentiment is high,the company’s equity financing cost will be reduced;The cost of equity financing will rise.Finally,based on this finding,this paper proposes that investors should cultivate scientific and rational investment concepts and enhance risk identification capabilities;companies should improve information disclosure systems and corporate governance systems;and regulatory authorities should increase their efforts to organize and regulate non-standard enterprises.Policy recommendations such as the strength of capital market supervision.