Research On The Influence Of Stock’s Lottery Characteristics On Corporate Investment Efficiency

In recent years,with the reform of the financial market entering the most difficult phase and the increasing channels and types of information for investors,many irrational behaviors appear in the practice of financial investment,and the“rational man” hypothesis in the traditional economic theory is challenged.As a result,behavioral economics and behavioral finance emerge at the historic moment,among which gambling preference is one of the key directions that scholars pay attention to.Investors show a strong preference for lottery-like stocks and regard the stock market as a “Gambling market”,willing to pay a higher price to “gamble” and usually get a lower follow-up yield.Under the background of the implementation of the registration system and the establishment of the Beijing Stock Exchange,equity financing channels will be increasingly important for enterprises to obtain external funds.Therefore,the characteristics of corporate stocks will have a greater impact on the financing behavior and investment behavior of enterprises,and the financing behavior and investment behavior of enterprises will affect the investment efficiency of enterprises.Therefore,it is of great significance to study the influence of the lottery characteristics of stocks on the investment efficiency of enterprises.At present,there is a problem of inefficient investment in Chinese listed companies,and the problem shows a trend of universality,seriousness and complexity.Based on this,this paper studies the impact of lottery characteristics of stock on corporate investment efficiency,and further explores the channel mechanism and possible moderating effects.The theoretical analysis of this paper is based on the efficient market hypothesis,the information asymmetry theory and the principal-agent theory.The influence mechanism is analyzed from the aspects of mispricing and corporate investment efficiency,institutional investor shareholding and corporate investment efficiency,and the moderating effect is analyzed from the perspective of financing constraints and the nature of corporate ownership,and the corresponding research hypotheses are put forward.Further,we selects the quarterly frequency data of the normally traded stocks in the Shanghai and Shenzhen A shares after eliminating the science and technology innovation board from 2009 to 2020,constructs the measurement indicators of the stock’s lottery characteristics and the degree of inefficient investment of enterprises,further divides the sub-samples of over-invested and under-invested enterprises on this basis.The paper use panel data model to empirically test the impact of stock’s lottery characteristics on corporate investment efficiency,as well as the mechanism and moderating effect.The empirical results show that the higher the lottery characteristics of the stock,the lower the degree of inefficient investment of enterprises,and this effect is valid for both over-invested and under-invested enterprises.Specifically,stock with high lottery characteristics,on the one hand,will increase investors’ attention to the stock,as well as the activity of trading and investment,which can improve the liquidity of the stock,thereby reducing the degree of mispricing of stock and further improving the investment efficiency of enterprises;On the other hand,it will also cause institutional investors to reduce their shareholding ratio due to weak gambling preference or aversion to gambling.Empirical results show that institutional investors play more of a “negative supervision” role in corporate governance in China,the possible reason is that the investment behavior of institutional investors is shortsighted and institutional investors themselves are easy to collude with corporate executives,therefore having high lottery characteristics can reduce the inefficiency investment of enterprises.The results of moderating effect analysis show that the improvement effect of stock’s lottery characteristics on corporate investment efficiency is significantly stronger in private enterprises than in stateowned enterprises,but no significant difference for enterprises facing different financing constraints.In order to ensure the reliability of these conclusions,we further change the measurement method of the explained variables and the parameter estimation method in benchmark regression model to conduct robustness tests.We also use the two-stage least square method to test the possible endogeneity problem.The results above are basically consistent,indicating that the conclusions of this paper are robust to a certain extent.The innovation point and contribution of this paper is that it provides theoretical mechanism analysis and empirical evidence for how the lottery characteristics of stocks affect the investment efficiency of enterprises,and enriches the research on the economic consequences of the lottery characteristics of stocks and the influencing factors of the investment efficiency of enterprises.In addition,quarterly frequency data is used in this paper,which can more effectively reflect the timely response degree of corporate investment decisions to the short-term characteristics of the stock market.