The Study Of Overinvestment Behavior Of Listed Companies Based On Investors' Overconfidence

Investment decisions of listed companies not only influence the companies'financing decisions and dividend policy, but also influence the companies'operation results and future developments. But existing in the listed companies'overinvestment which having become the principal element of obstructing future development of listed companies. This is because the administrators of the listed companies when they making the investment decisions, they tend to be constrained by the listed companies'stock price deviates its fundamental value. Owing to the listed companies'stock price would deviate because of acknowledge and behavioral deviance of the investors in the market, then leading to the listed companies'stock price deviates its fundamental value, and then resulting in the problems of the overinvestment of the listed companies. And also because of acknowledge and behavioral deviance of the investors are widespread considered caused by the overconfidence of the investors, and overconfidence has been widely used in explaining all kinds of acknowledge and behavioral deviance of the investors. Therefore, the research based on the investors'overconfidence and behavior on overinvestment of listed companies has important significance.First of all, this paper from the model studies and empirical studies aspects, and also straightens out and reviews the existing researches in the investors'overconfidence and behavior on overinvestment of listed companies, and then analyzes the theoretical basis of the investors'overconfidence and behavior on overinvestment of listed companies, accordingly studies the influence and mechanism of the investors'overconfidence and behavior on overinvestment of listed companies. And on this basis, this paper uses turnover rate as the proxy variables of the investors'overconfidence, and builds the model of the influence based on the investors'overconfidence of the behavior on overinvestment of listed companies, and then theoretically demonstrates that the investors'overconfidence and behavior on overinvestment of listed companies have the same change direction. In order to examine the results of the theoretical model, this paper selects the data of stock market of China to build the econometric model, and empirical analysis of the influence based on the investors' overconfidence of the behavior on overinvestment of listed companies, and then reaches a conclusion that the empirical result supports the results of the theoretical model. So, it is also apply that the theoretical model research of this paper has been empirically proved by the stock market data of China. Through analyzing the conclusions in this paper, gives some relevant proposals.