The Study On Investor Sentiment And Investment Behavior Of Listed Companies

The investment and financing decisions is a very important branch of corporate finance. As the core of one of the financial decisions, investment decision is the driving force of cash flow and corporate growth in the future, directly determines the operational risks faced by the company and the future profitability of the capital market for the company. It also objectively effect validity of the assessment of the value of the company and the prices of the securities.So investment decisions can be called the beginning of the corporate financial decisions.Traditional investment and financing theory is based on the assumptions of the efficient market, rational market participants and the effectiveness of market price is the premise of the company’s investment decisions, but in fact,the economic situation and the stock market fluctuations have proved market prices often deviate from the real value of the company. Shleifer (2003)、Baker et al (2004)、Polk and Sapienza (2009) and other scholars have done a lot of research on investment decision of companies in the irrational market, using rational man as a starting point, from the viewpoint of irrational man and irrational decision-makers of company, put forward theory of market caters mechanism and market timing mechanism.In addition, price signals is an important means of transmission of market information, in conditions of incomplete information, decision-makers have the motivation to learn from the market. To a large extent, distortions in market prices affect the company’s investment decision-makers. If the decision maker is irrational, or non-valid information can not be filtered in the market, then the decision-making process will be inevitably effected by the irrational factors in the market MS V (1990).From Behavioral finance point of view, the vast majority of researches on corporate investment decision start from the two aspects above, although research in this field has just started, there have been more and more scholars have set their sights on the field, also obtained many valuable research results, but the author believes that irrational behavior of market participants and the effective degree of market information are in a mutual cause-effect relation, which evokes my great interest.On one hand, investor sentiment causes the stock price deviates from its value, under the guidance of the wrong price, managers of the company make investment decisions and causing inefficiency investments On the other hand, with the continuous development of China’s capital market, more and more literatures have proved that China’s market efficiency is increasing, especially after non-tradable shares reform, the stock price informativeness has been significantly improved. Higher the stock price informativeness, smaller the noise the manager accepts from the price signals, higher efficient of price information help managers to fund more in line with the maximum value of the company’s long-term project.At the same time, with the increase of market efficiency and the information content of stock price, market information and industry information contained in stock prices should be more and more small, the company private information should more and more, so the stock price non-synchronicity grows. Market emotional fluctuations caused by the irrational can be alleviated, which makes further efforts to improve the accuracy of market price signals, help enterprises to promote investment efficiency.In view of the above theory, this paper tries to use the financial data of China’s listing Corporation, building model of proxy index to select reasonable investor sentiment and the information content of stock price, discuss the relationship between factors, hoping to offer a new perspective the enterprise investment behavior research from a relatively complete system.