A Study On The Influence Of Investor 's Emotion On R & D Investment Behavior And Its Mechanism

According to the hypothesis of market efficiency and rational people based ontraditional economic theory, invester can get the truth corporate value. However,Asymmetric Information, Noise Trade and Cognitive Factors bring systemdeviation to Stock Prices in EV, that is the Investor Sentiment. The misjudgement ofEV will inevitably affect the manager’s investment decisions. In particular the R&Dinvestment, the Investor Sentiment will bring more significant influence, due to theUncertainty, Risk and Revenue Hysteresis. Therefore, this article will focus on the inthe influence between Investor Sentiment, Behavior and Mechanism in R&Dinvestment.Based on the specific situation of China’s capital market, the paper build theresearch framework, which cover the limited rationality of owners and operators. Inthe paper, through theoretical analysis of Investor Sentiment and R&D InvestmentBehavior, the author issue the hypotheses and models, and then select the stock datefrom2008-2012in Chinese A-share market, on the aspect of rationality and limitedrationality, carry out the empirical analysis of Investor Sentiment to Behavior andMechanism in R&D investment.The conlusion of empirical analysis show that: First, significant positivecorrelation between R&D investment behavior and Investor Sentiment, and risinginvestor sentiment stimulus managers to increase R&D investment. Second, notsignificant correlation between R&D investment and the rational catering motive, andthe significant positive correlation between R&D investment and the equity financingmotive, which shows that rational operators will adjudt the R&D investment behavior,taking into account of the equity financing motive. On the premise of the managerlimited rationality, the positive correlation between R&D investment and managersoptimism shows that Investor Sentiment will take more significant effect on the R&Dinvestment though managers optimism and manipulate the behavior of R&Dinvestment.For these findings, this paper proposes some advices. In the macro level, thegoverment should strengthen investor education regulators, choose the right economic policy to guide the investor sentiment, improve the mechanism of informationdisclosure, increase scientific and technological innovation support. In the micro level,the enterprises should improve the governance structure, build more comprehensivemeasure to evaluat manager performance, perfect the investment decision-makingprocess and improve efficiency in R&D investment.