The Theoretical And Empirical Analysis Of The Impact Of Bounded Rationality Upon Corporate Pricing

The thesis utilizes Economic Value Added related index, which were excogitated by Stern Stewart Co., to analyze corporate value system in the light of shareholders' value maximization. Based on this, the thesis incorporates managers' irrational behavior caused by human's irrationality and market's inefficiency into the formation of corporate value, and accordingly put forwards Behavioral Corporate Valuation Mechanism and Behavioral Corporate Valuation Model. Furthermore, the thesis empirically analyzes Chinese listed Companies, and finds out that: 1) In Chinese securities market, investors cannot correctly evaluate companies' value and accordingly overvalue low-qualitied companies and undervalue high-qualitied companies. 2) Corporate market value that departures from intrinsic value influences managers' behavior and thus holdbacks corporate value creation. 3) The impact of corporate value bias to corporate intrinsic value is as follow: Managers' bounded rationality reduces corporate reinvestment return, then debases corporate value creation, and finally affects both corporate intrinsic value and market value.