INVESTORS’ IRRATIONAL BEHAVIORS, STOCK-PRICE FLUCTUATION AND ENTERPRISE INEFFICIENT INVESTMENT
Journal Title: Topics in Economics, Business and Management (EBM) - Year 2017, Vol 1, Issue 1
Abstract
Based on Chinese A-share companies as research samples, the effect of investors’ irrational behaviors on enterprise inefficient investment was studied in this paper. Results show that investors’ overconfidence and their sentiments are positively correlated with enterprise inefficient investment, and stock price fluctuation play a mediation role between the two. By further investigation, it can be found that the effects of investors’ overconfidence on stock price fluctuation and on enterprise inefficient investment are of certain persistence and share the same direction. However, the effects of investor’s sentiment on stock price fluctuation at the current stage and later stages are of intervals and feature direction variation. The worsening and relieving effect of stock price fluctuation on over-investment is particularly significant on lagged first-order
Authors and Affiliations
Huang Yi, Yang Xiugang
Keywords
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- EP ID EP412780
- DOI 10.26480/icemi.01.2017.106.108
- Views 84
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