News sentiment and investment efficiency: Evidence from China

被引：2
|
作者：
Hsu, Yuan-Teng [1 ]
Hua, Min [2 ]
Liu, Heng [2 ]
Wang, Qingren [2 ]
机构：
[1] Shanghai Business Sch, Res Ctr Finance, Shanghai, Peoples R China
[2] Shanghai Business Sch, Fac Profess Finance & Accountancy, 2271 West Zhong Shan Rd, Shanghai 200235, Peoples R China
来源：
EUROPEAN FINANCIAL MANAGEMENT | 2024年 / 30卷 / 03期
关键词：
corporate governance; financial constraints; investment efficiency; news sentiment; RESEARCH-AND-DEVELOPMENT; FINANCIAL CONSTRAINTS; AGENCY COSTS; OWNERSHIP STRUCTURE; CORPORATE-FINANCE; FIRM PERFORMANCE; CASH FLOW; INFORMATION; QUALITY; GENDER;
D O I：
10.1111/eufm.12454
中图分类号：
F8 [财政、金融];
学科分类号：
0202 ;
摘要：
This study investigates the impact of media sentiment on firms' investment efficiency in the Chinese market during 2007-2017. We find that increased media sentiment can lead to overinvestment and thus distort investment efficiency, but it has no significant effect on underinvestment. Further, mediation analysis shows that financing constraints mediates the media sentiment effects on overinvestment. To mitigate potential endogenous problems, we employ instrumental variable approach and propensity score matching method. The main findings hold after a battery of robustness tests. Further tests show that corporate governance factors can ameliorate the adverse effect of news sentiment on corporate investment efficiency.
引用
收藏
页码：1587 / 1617
页数：31
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