Investor Sentiment,Credit Financing And Corporate Investment Efficiency

As an important way for companies to obtain cash income and the source of power for continuous expansion and development.Reasonable and effective investment can enable enterprises to obtain expected returns while diversifying market risks,and can take certain advantages in the development and expansion of enterprises;non-efficiency investment may weaken the competitive advantage of enterprises and even damage the future development of enterprises.However,in practice,the phenomenon of low investment efficiency exists in Chinese enterprises.This phenomenon may lead to the company missing development opportunities,causing huge losses to the company,and even causing waste of social resources and impairing macroeconomic developmentInvestor sentiment and credit financing are two important factors that affect investment efficiency.With the rise of investor sentiment,the stock price of the company will be overestimated,and the rise of the stock price of the company will make the equity financing cost of the company lower.In order to maximize the self-interest,managers will invest relatively poorly.The project causes excessive investment in the enterprise;on the contrary,as investors' sentiment deteriorates,the stock price of the enterprise will be underestimated.At this time,the equity financing cost of the enterprise is high,and enterprises that rely on equity financing to invest will give up the enterprise.Projects that bring in revenues have caused insufficient investment in companies.Credit financing is an important way to increase corporate funds.Credit financing eases the degree of corporate financing constraints and provides more financial support for follow-on investments.When faced with financing constraints,companies have better investment opportunities but have lost their investment opportunities because of the shortage of free cash flow,resulting in insufficient investment and damaging the value of the company.Credit financing increases the free cash flow of enterprises.In order for managers to make their profits higher and larger,managers may abandon the original low-risk projects and invest funds in high-risk projects.Once the investment projects are successful,the company will With huge profits,the value of oneself will be improved.Even if the investment fails,the loss will be passed on to the creditor.This article first sorts out and summarizes relevant literature at home and abroad,analyzes how investor sentiment affects investment efficiency,and how investor sentiment has a regulatory effect on credit financing and corporate investment efficiency.Then select the data of all A-share listed companies from 2011 to 2016 to analyze,establish a model that is suitable for them,and put forward hypotheses based on previous scholars' research,and select appropriate variables for empirical analysis.By combing related theories and empirically analyzing the data,the results of this study show that:The buoyant investor sentiment is positively related to over-investment and negatively related to under-investment;low investor sentiment is negatively correlated with over-investment and positively related to under-investment.Under the buoyant investor sentiment,the positive correlation between credit financing and over-investment in companies has been strengthened,which has weakened the negative correlation with the under-investment of enterprises;under the low investor sentiment,credit financing is negative for corporate underinvestment.The strengthening of the relationship has weakened the excessive positive correlation of corporate investment.