The Research On The Effect Of Governor's Human Capital Of The Company's Financial Behavior

Human capital is an important capital in our company! Governors are the most important decision-maker of a company! As a decision-making power capital, governors' human capital has the how-to polar effect which is even a certain degree of decision. The governors will have consequences on financing, investment and dividend allocation. So how to know the governors' influence to the financial behavioral and then engage their irrational behavioral become the springboard and aim of this paper.The research of behavioral finance started very late in our country, and most of existing studies focus on summaries of behavioral finance theories and the explanation of unusual phenomena in security market with these theories, which are seldom applied in corporate finance. Based on the research of behavioral finance theories both at home and abroad, this paper introduces the existing architecture of behavioral finance theories systematically, compares them with traditional finance theories, and investigates the application of behavioral finance theories in corporate finance, on the foundation of the comparisons of behavioral finance theories and traditional finance theories on financing policy,investment policy and dividend policy. So it can bring about a financing strategy aimed at incomplete rational and inefficient market.This paper is based on the behavioral finance, supported by human capital theory, the managers' behavior as a core factor of a company's financial behavior, that is to say, it is the governor's behavior influence the company's financial choice. First of all, this paper starts with human capital theories,control right theories and behavioral finance theories, then point out the irreplaceable of the human capital. In face, human capital have the control right of the company. Meanwhile, behavioral financial explains the people's choice by psychology and prospect theory. Secondly, this paper analyses the following questions: on the financing behavioral governors cater to the capital providers, making irrational behavioral on financing order and opportunity. On the investment behavioral, due to the assuredness, envy and regret aversion, governors will have the behavior of escalation of commitment,underinvestment,capital replace which are fall away the best investment decision-making. On the dividend distribution, governors tend to cater the investment. At the same time, our listed companies have the interest stock dividend preference. Finally, for the influence of the governor human capital to financial behavioral, we put forward the suggestions which can be engaged the behavioral of governor's human capital. The innovation of this paper is that interpreting governor's action choice in decision-making of finance on base of behavioral finance theory. Introducing governor's human capital to capital structure and confirming the proportion of governor's human capital according as it's financing cost. This has present significance in perfecting behavior of finance and restricting behavior of governors in corporations.