摘要：Behavioral finance suggests that mispricing is positively related to corporate investment, and overvalued (undervalued) firms tend to over (under)-invest, which leads to the inefficiency of investment, and we studies whether institutional investors enlarge or reduce the impact of mispricing on investment, by decomposing the market-to-book ratio into mispricing and growth components. The result shows that investor sentiment directly affects the corporate investment. This investment- mispricing link is more pronounced in firms with higher institutional investor ownership. Our evidence suggests that institutional investors such as insurance firms and trust will amplify this link. This study can provide real economy with evidence, and evaluate the role institution play and economy impact, which have certain reference significance for the securities market regulation and policy making departments.
