Research On The Impact Of Investor Sentiment On Excessive Financing Of Listed Companies

Finance represents the financing of funds and is an indispensable part of our life.With the gradual development and improvement of market economy,finance plays an increasingly important role in the whole economic field.Whether it is the efficient market hypothesis or the capital asset pricing model,although these financial theories of the last century have been controversial in today’s scientific field,they can’t erase the brilliance of these theories and their unshakable position in the whole financial field.It is precisely because traditional financial theory can’t give a reasonable and complete explanation to many financial phenomena in real life.Under the challenge of traditional financial theory,behavioral finance began to enter the public’s vision.Behavioral finance is based on psychological theory.It systematically expounds the market abnormal behavior in the reality that traditional financial theory cannot explain.It breaks through the limitation of traditional financial theory.Starting from the actual decision-making psychology of investors and combining with authoritative financial theory,it makes people’s investment behavior of investors in capital market and company’s decision-making more comprehensive.Deep understanding,so that the conclusions are more in line with the actual economic situation.Following the pace of economic globalization,China’s economy has also been unprecedented rapid development,the growth rate of listed companies is also growing faster and faster,financing capacity is becoming increasingly important.A large number of listed companies need the support of funds for the turnover of enterprises.It is not enough to rely solely on government subsidies or bank loans to support the sustainable and sound development of an enterprise.Under the background of behavioral finance theory and combined with past practical experience,this paper makes theoretical analysis and Empirical Analysis on the phenomenon of excessive financing of enterprises under the assumption that investors are irrational while managers are rational.It tries to find out the causes of excessive financing of enterprises and put forward relevant reasonable suggestions,so as to strengthen investors’ correct view of capital market and cultivate rationality.Investors,strengthen business management,improve the capital market has important practical significance.