TITLE:
Investor Sentiment, Institutional Investors and Corporate Innovation Investment —Evidence with Different Ownership Structure from China
AUTHORS:
Haiyan Xue, Xindong Zhang
KEYWORDS:
Innovation Investment, Investor Sentiment, Institutional Investors
JOURNAL NAME:
Theoretical Economics Letters,
Vol.10 No.5,
October
29,
2020
ABSTRACT: This paper investigates the relation between investor
sentiment and firm innovation investment in China, and explores the intermediary
role of institutional investors. We find that the impact of investor sentiment on
innovation investment is quite different between state-owned enterprises (SOEs)
and private-owned enterprises (POEs). Investor sentiment promotes the innovation
investment of POEs, while inhibits SOEs. We also find that institutional investors
play a positive intermediary facilitating role in POEs, mainly contributing by supervisor
independent institutional investors. We do not find any role for institutional investors
in SOEs.