Investor Sentiment And Investment Leve L Of The Listed Companies

The traditional financial theory based on the efficiency market hypothesis and assumptions of rational investors, that arbitrage is no risk and no cost. However, since the1980s, there was a lot of stock market abnormal phenomenon that is difficult to use the traditional financial theory to explain it, therefore behavioral finance become a new research hotspot. Behavioral finance scholars demonstrate the limitation of arbitrage theoretically. A large number of psychology theory also shows that investors are not "reason", but "normal" people, the systematic bias of their beliefs can cause that their transactions are not based on the basic information, the researchers call this phenomenon "emotion". Investor sentiment is is a belief of the future cash flow and the risk of investment it cause different influence on investors in asset valuation produced from the basic information, so as to cause system continuous influence on the market,as a result the stock price is overvalued or undervalued, and deviate from their equilibrium values in the same direction in a certain period of time. So,whether this kind of stock market "mis-pricing" will in turn affect entity enterprise investment decision?Based on sorting out the preliminary studies and theoretical analysis,this paper chose2003-2010panel data of the A share listed companies from Shanghai and shenzhen stock markets of China as research sample, from the perspective that catering theory of the behavioral finance and conservative behavior coexistence, using the empirical research method to analyze how investor sentiment influence on investment level of the listed companies in China. This article draws the following conclusions:in the face of the irrational investors,company managers significantly cater to psychological and certain conservative tendency.The catering channel is the main channel that investor sentiment affect the company investment level. In the turbulent times, all companies showed a tendency cater to investor sentiment, but in a calm period, only the high level of investment group has catering behavior, and the low level of investment group showed the level of investment not affected by investor sentiment.The high level of investment group with a strong cater motivation, even if is the low financing constraints company, also showed significant catering behavior, but companies with high financing constraints are more sensitive to the investor sentiment; However, only in low financing constraints cases, conservative tendency is to play a significant role in the investment decision-making in the low investment level group.