The investors in capital market are not always fully rational, which will lead to overestimation or underestimation of the stock price, and the management of the company may cater to such mispricing. With a sample of 2003-2010 Chinese listed companies, this paper confirms that the companies do cater to the investor sentiment when they make investment decisions. Further analysis indicates that，different intervals of the capital market, myopia of the investors and financing constraints of the companies have significant impacts on such catering behavior.