Investor Sentiment and Distorted Investment of Chinese Listed Companies
With an unbalanced panel data set of A-share listed firms over the period of 1998-2006, we use the closed-end fund discount, turnover and average firstday returns on IPO as proxies for investor sentiment to analyze the relationship between investor sentiment and investment behavior. We find the following results: (l)in China, investor sentiment has a positive impact on corporate investment scale and this hypothesis is more relevant in firms with financial constraint; (2)when pessimistic investor sentiment takes place, the listed firms are likely to under invest and when optimistic, the listed firms are likely to overinvest; (3)investor sentiment is more sensitive in bull markets, which becomes more pronounced in the subsample of the firms with financial constraint.
investor sentiment underinvestment overinvestment
SHEN Weitao WANG Zhenjie
School of Management, Xiamen University, China, 361005
国际会议
The 5th International Sympsium for Corporate Governance(第五届公司治理国际研讨会)
天津
英文
94-102
2009-09-01（万方平台首次上网日期，不代表论文的发表时间）