Research on Heterogeneity of Property Rights, Investor Sentiment and Firm Investment Level
Traditional investment behavior is commonly based on the "rational man" hypothesis and efficient market hypothesis. However, the actual market environment is not entirely in line with these theories, as investors are not always fully rational. While research on investor sentiment has mainly focused on its impact on corporate financing and market performance, little attention has been paid to how it affects corporate investment levels. To address this gap, this study examines the impact of investor sentiment on enterprise investment levels in the food and beverage industry in China between 2017 and 2020. In doing so, we introduce the moderating utility of property rights factors and financing constraints, and empirically test the relationship between investor sentiment and enterprise investment levels. Our findings indicate that investor sentiment is significantly and positively correlated with enterprise investment levels. Additionally, we find that the impact of investor sentiment on enterprise investment levels is significantly amplified by the degree of financing constraints faced by enterprises. Moreover, private enterprises are more susceptible to the influence of investor sentiment on their investment behavior compared to state-owned enterprises. Overall, our study contributes to the understanding of the impact of investor sentiment on enterprises, particularly with respect to investment decisions
Year of publication: |
[2023]
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Authors: | Li, Shuqi ; Wu, Mengyun |
Publisher: |
[S.l.] : SSRN |
Saved in:
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