Investor Sentiment,IPO Over-financing And Stock Return Based On The Empirical Evidence Of The Enterprise Growth Market

There is more than six years of the growth enterprise market in China since it is launched in October in 2009,for the high-tech enterprises and small and medium-sized enterprises to expand the financing channels.However,with the development of Chinese GEM market,the problem of IPO over-financing is paid more and more attention.IPO over-financing is raised by issuing shares of listed companies to raise money,the actual net to raise money is greater than the planned amount.At the same time,because it is not long to set up the growth enterprise market,and it is given priority to small and medium-sized investors,so irrational investor phenomenon is relatively serious,the market trading mechanism is far short of the level of the efficient market.Investor sentiment is investors' expectations of future market gains deviation,driven by the mood and expectation,investors often make the wrong investment decisions,resulting in the stock market turmoil,cause serious problem of IPO over-financing.Therefore from the perspective of behavioral finance,this article selects the representative of the growth enterprise market listed companies as the research object,trying to explore whether investor sentiment volatility is the cause of IPO over-financing,in the future if there is a further effect on stock returns.Investor sentiment aggravate the phenomenon of stock market volatility,what measures should be taken to avoid.Articles select 355 IPO gem companies from 2009 to 2013 as the research objects,from the new perspective and in the empirical study of IPO financing phenomenon,from the aspects of institutional investors and individual investors,the long-term and short-term investors to research.The results of the study show that investor sentiment is the main factor of forming high raise rate,institutional investors and individual investors sentiment for super raise rate has positive influence,it shows that the positive feedback effect in the market and the institutional investors are not enough rational,at the same time,short-term investor sentiment and long-term investor sentiment has positive influence for super raise rate.Further study found that investor sentiment is positive related to stock short-term return,and is negative related to the long-term return,IPO over-financing is the role of promotion.This shows that investor sentinment pushed up the stock short-term gains,cause market speculative bubbles and volatility,but long-term stock returns gradually return to rational,because after people gain the short-term profit,the prices have been gravely deviates from the value,depressing prices expected strong for a long time,and in the long run,information asymmetry phenomenon in the field will be reduced,whether outside investors or internal investors will grasp more information,bad company or excessive packaging companies are disclosed,stock price return to the rational.The policy implications of this study show that we should intensify supervision of the growth enterprise market,increase the transparency of information disclosure,and improve the system of corporate governance,improve the system of transaction,rational investment guide investors,government departments should formulate relevant policies to protect the interests of the small and medium-sized investors,making the growth enterprise market to optimize the allocation of resources,improve the efficiency of the market,so as to realize long-term stable development.