Top Management Characteristics,Investor Sentiment And Corporate Investment,Performance

Vietnam is an emerging and developing economy.While its economy is growing at a high speed,the securities market is also developing rapidly.However,due to the late start of the Vietnamese stock market,compared with the developed capital market,investors are not so mature and rational,the investor sentiment has a more important impact on the investment decisions of listed companies in Vietnam.On the other hand,the management of listed companies in Vietnam have different decisions due to differences in their own cognitive styles and values,which make turn affects the company's investment level and performance.According to the literature review,there are many literatures that study the relationship between investor sentiment and corporate investment,but the research literature that the top management characteristics,investor sentiment,and corporate investment and performance into the analytical framework is rarely examined,empirical research is especially lacking.Moreover,the existing research only discuss the background characteristics of managers,such as age,education and tenure,and ignores the influence of top management power characteristics on the relationship between investor sentiment and corporate investment.Based on the catering theory and the upper echelon theory,this study selects the listed companies in Ha Noi and Ho Chi Minh Stock Exchange as samples,analyzes the relationship between investor sentiment and corporate performance,and from the background characteristics and power characteristics of top managers.And the two demensions of the background characteristics and power characteristics dimension further explores the role of the top management characteristics in regulating these relationships.To this and,this research attemts to answer the following questions:(1)In the VietNam's Stock Exchange,is there any related effects on investor sentiment and corporate investment level? Is there any moderating effect of the influence of top management characteristics on investor sentiment and corporate investment level?(2)is there any inefficient investments in the VietNam's Stock Exchange,including over-investment and under-investment,and how does investor sentiment affect the company's over-investment(or under-investment)? The top management characteristics on investor sentiment and overinvestment(or under-investment)is there a moderating effect on the impact?(3)What is the relationship affect between investor sentiment and corporate performance? Does the top management characteristics affect the relationship between investor sentiment and comporate performance?The conclusions of this study are as follows:First,the managers of listed companies in Vietnam have a tendency or catering effect on investor sentiment.The investor sentiment is significantly positively correlated with the company's investment level,but this catering effect is influenced by the background characteristics(such as gender,age and education level)and the power characteristics(such as shareholding,tenure,and proportion of concurrent directors).These characteristics to some extent can weaken this catering effect.Second,Examining the relationship between investor sentiment and investment efficiency(or inefficient investment)of listed companies in VietNam,it was found that investor sentiment exacerbated the company's over investment and eased the under investment.Further analysis shows that higher the proportion of male and part-time derectors in the top managers team,the older the age,the higher the degree of education and the more shares leld,the weaker the positive correlation between investor sentiment and overinvestment,and the weaker the negative correlation between investor sentiment and underinvestment.The longer tenure of managers,the smaller the positive impact of investor sentiment on over-investment,but it has no significant impact on under-investment.Third,managers have tempered the wrong pricing of investors,which has worsened the company's investment inefficiency,which has weakened the company's performance.Further investigation of the regulatory role of managerial characteristics found that higher the proportion of male in the top managers team,the older the age,the higher the degree of education and the longer tenure of managers,the more shares leld,the higher the proportion of concurrent directors,the smaller catering effect of the top managers.The negative correlation between investor sentiment and company performance is weakerThe innovations of this study are:First,this study examines in depth the relationship between the top management characteristics,investor sentiment,and corporate investment or corporate performance.It doses not only enriches the empirical results of the regulatory effect of the top management characteristics on the company's investment in catering investor sentiment.It also reveals the top management characteristics the moderating mechanism of the relationship between investor sentiment and corporate performance,compensates for the lack of research in this academic field and expands the perception of the relationship between the top management characteristics and corporate performance.Second,Existing relevant literatures mainly discuss the relationship between the top management background characteristics,investor sentiment and corporate investment level.This paper takes "catering theory" and " upper echelons theory " as the theoretical basis,and will make the top management power characteristics and companies research topics such as investment efficiency are included in the research scope of this study.It is found that the top management background characteristics and power characteristics inhibit the relationship between investor sentiment and corporate investment efficiency(over-investment and underinvestment),and expand the research on the top management power characteristics and the company's investment efficiency.Thirdly,this study starts from the background of the Vietnamese system and collects sample data of listed companies in Vietnam from 2011 to 2017.It is empirically tests whether the investor sentiment of listed companies in Vietnam affects the company's investment behavior or corporate performance,and Whether the relationship between investor sentiment and corporate investment or performance is moderating effect by the top management characteristics,it enriches the empirical research of ? catering theory? and ?upper echelons theory? in the context of Vietnam.In addition,the study also compares the empirical results of Vietnam with the empirical findings of other representative countries and reveals the similarities and differences between them,and provides a reference for cross-border comparative research...