Analysis Of Company Investment Decision Based On Behavioral Finance Theory

Investment is the source and power of corporate sustainable growth.Proper uutilization of appropriate investment theory can maintain and promote the development of enterprises,on the contrary,the wrong investment decision-making may allow enterprises to face the wave of bankruptcy.As we all know,the previous financial theory system is based on rational hypothesis and effective market theory,these hypotheses do not discuss the actual decision-making process of investors according to the actual situation,the only way to state what is optimal decision is to use the optimal decision is to use the optimal decision model,it is gradually found that there exists a deviation between the financial theory model and the practice of decision makers.Hence,the traditional financial theory model has been questioned.With the deepening of the study,scholars find that deviations from conventional financial theories make perfect explanations in behavioral finance.Hence,the behavior finance has become the focal point of theortical research step by step.As China's research on behavioral finance theory started late,this paper draws on a large number of overseas research results,combined with the actual situation in our country,to conduct further explorations of behavioral finance theory.This can make the managers understand the psychological factors of the investment subject to the decision-making process of the huge impact,so as to avoid the decision-making process by the herd behavior,cognitive bias and choice preferences and other psychological factors to make irrational investment decisions.In this paper,through the summary of the financial system and the theoretical system of combing the behavior with HuaErRun corporate investment problem,it analyzes the reasons of the failure of the investment due to the psychological deviation of the manager and analyzes the investment decision of the company from the perspective of the behavioral finance theory.It not only standardizes the content of enterprise information disclosure,strengthens the external coordination mechanism and improved the related system of managers,but also providing practical guidance for enterprise investment decision.