Guan-Xi Networks and Sentiment of Institutional Investors in the Emerging E-Society

This paper provides a conceptual framework for examining effects of guan-xi on institutional investor's sentiment in the emerging e-society of China. The conception model generates a new perspective on the growing literature in investors' sentiment: guan-xi and institutional investors' sentiment has a significant relationship. Investor managers, from more than fifty institutional investors were investigated using a structured survey. The institutional investor sentiment approach that we use in this paper is contrary to classical ones. It is measured with a systematic method. Empirical results show that there is a significant effect of guan-xi on institutional investors' sentiment. A direct implication of empirical evidence is that it is important for international investment to consider the role of guan-xi in the emerging e-society of China.