The Research About Investor Sentiment,Manager Myopia And Corporate Investment

In recent years,the investment distortions of listed companies in our country are frequent,mainly because the company does not choose investment projects which can maximize the profit of the company.This phenomenon seriously damages the interests of shareholders,weakens the value of the company,resulting in social resource allocation can not achieve the best and even the national economy suffered a certain loss.domestic and foreign scholars try to explain through the traditional principal-agent theory,but the results are unsatisfactory.Then,with the rise of behavioral finance,foreign scholars took the lead in trying to combine psychology with behavioral finance.Through the theoretical analysis and empirical test,the results showed that the behavior of "distorted" investment of companies was largely due to the irrationality of investors and irrational influence of managers.Thus,in view of the actual situation of listed companies in China,what kind of relationship between investors irrational,managers irrational and corporate investment in the end? To take the appropriate preventive measures,if the company's investment "distorted" phenomenon will be improved? The research and solution of these problems will help the company to invest more rationally,the development of more stable,more efficient allocation of economic resources and thus stimulate the national economy better and faster development.There are several forms about the irrationality of the investors and the irrational of the managers,but in view of the fact that the selection of other indicators of the form has not yet formed a unified view in the academic circles,this paper chooses the investor emotions and manager myopia as representatives of the investor irrationality and manager irrationality respectively,and research specifically how investor sentiment,managers myopia and the coexistence of the two cases influence corporate investment respectively.On the theoretical side,this paper combines the traditional theory of finance and behavioral finance theory,and systematically expounds the research mechanism and approach.On the empirical hand,after collecting,sorting and removing the data,this paper takes the data of the listed companies in 2010-2015 as the research samples,and draws empirical model from Liu Duan and Chen Shou(2006),Hua Guiru and Liu Zhiyuan(2011)and Wen Zhonglin(2004),adding the corresponding control variables,and then using relevant indicators on the assumptions made in this paperconducted an empirical study.there are several concludes :(1)Both investor sentiment and manager myopia will reduce long-term investment and reduce short-term investment;(2)In the context of institutional investors holdings,managers myopia were effectively curbed,the performance are that the short-term investment is reduced,and the short-term investment is reduced.,The results are statistically significant;(3)Under the influence of managers myopia and investor sentiment,the company's investment will be affected,and after the test of the intermediary effect model,found that by influenced manager myopia,investors sentiment affect corporate investment.This paper has the following innovations: Firstly,In order to ensure that the research is closer to the real market,this paper adopts the method of gradually relaxing the hypothesis;secondly,in order to if there are the phenomenon of managerial myopia when investor sentiment influence the company's investment process,the Mediation test procedures are used to test the Infectious effects between investor sentiment and managerial myopia;thirdly,which is different from the previous single study,this paper will take investors sentiment and managers myopia into the same framework to study their common impact on the company's investment;Fourthly,the introduction of institutional investors as an important factor in corporate governance,we study whether institutional investors can play a corresponding constraint in participating in the company's investmentAccording to the study of this paper,the following inspiration is obtained:(1)institutional investors can correct the manager myopia,thus improve the investment behavior.guiding the company rational investment;(2)investors should be aware of risk and establish a correct investment concept to avoid blind and emotional investment;(3)managers should use expertise to determine the trade in the future,avoiding being affect by investor sentiment and other factors.In this paper,there are some shortcomings in the study,mainly as follows:(1)In view of the limitations of the data of listed companies in China and the difficulty of other forms of performance indicators,so there is no in-depth study how other forms of irrational investors and managers irrational affect the company's investment;(2)the empirical research of this paper is carried out under the conditions of theoretical assumptions,which led to the study is still not strict.