News sentiment and investment efficiency: Evidence from China
研究2007-2017年中国市场媒体情绪对企业投资效率的影响，发现媒体情绪升高会导致过度投资，融资约束起中介作用，公司治理可缓解负面效应。
Abstract 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.