Investors Irrational Emotional Impact On The Listed Company Investment Research

The traditional financial theory assumes that the efficient performance of markets and investors when they explain the relationship between stock prices and the real economy. They believe that the changes on the stock price will affect the real economy. But traditional finance theory is difficult to explain the long-term deviations of stock prices and the real economy. Behavioral finance believe that investors existence irrational emotions, investors sentiment caused the deviation of stock pricing, which affects the investment behavior of enterprises.This paper chose the data of China markets. Chose discretionary accruals as the index to measure investor sentiment, add investment opportunities, cash flow, financial leverage and company size into the model. This paper examines the impact of investor sentiment on the investment level and investment efficiency.Research results indicated:(1) Investor sentiment has a significant positive correlation on companies’the level of investment.(2) In a bull market, investor sentiment has more influence on companies’investment; in a bear market, investor sentiment has less influence on companies’ investment.(3)Investor sentiment has more influence on companies which have a higher investment level, investor sentiment has a significant positive correlation on this companies. Investor sentiment has less influence on companies which have a lower investment level, investor sentiment hasn’t a significant positive correlation on this companies.(4) Investor sentiment has a significant negatively correlation on the operating efficiency of listed companies.