The Research Of The Motivation And Model On Escalation Of Commitment Behavior In Listed Companies

With the market economy reform deepens and the continuous development of social economy or the continuous improvement of the market economy system, All kinds of Listing corporation is becoming more and more important in the national economy, It has become an indispensable important force in social and economic development. But there are plenty of risks in the enterprises'development. From the published annual financial statements of Listing corporation in our country, A lot of enterprise's financial situation is not optimistic, The most prominent problem is the actual investment over budget investment problem, and this problem may bring the danger of bankruptcy to the listed company.This article through to the reading of domestic and foreign literature, and combinated with the existing Escalation of Commitment behavior, then Defined the discriminant standard of Escalation of Commitment behavior. This article take empirical research as the main line, the dependent variable was whether increased malignant behavior of listed companies, and eleven financial indicators will be selected from the annual report (the first shareholder's shareholding, cash holdings, total assets, the company size, total assets turnover ratio, asset-liability ratio, earnings per share, sales revenue growth, after deducting non-recurring gains and losses of the weighted average growth rate of return on equity, dividend payment rate, investment activities generated cash flow) as the independent variables. Then establish the regression model. Intended to select the most significant independent variable indicators to establish the regression equation, and then verified the resulting equations.Through the empirical analysis of this article, finally it is concluded that the cash holdings, the company size, sales revenue growth, asset-liability ratio and dividend payment rate these indicators were significantly associated with dependent variable. But through the collinearity diagnosis and logistic regression then find our the most suitable for discriminant model was the cash holdings. Can be concluded from this, the company's cash holdings was the assignable indicator of the Escalation of Commitment behavior. Based on the conclusion of empirical analysis of listed companies Escalation of Commitment behavior judgement, this article put forward a few of prevention and discriminant suggestions.