The Effect Of Managerial Overconfidence On Inefficient Investment Based On The Comparative Analysis Of State Owned Enterprises And Private Enterprises

As the core financial decision of the company,investment has an important impact on the growth of the value of the company,and provides a basis for the growth of the enterprise and the continuous growth of the future cash flow.Since the reform and opening up,with the rapid development of market economy,the company's widespread enthusiasm for investment is too high,inefficient investment phenomenon.In recent years,with the slowdown in macroeconomic growth,economic growth into the new normal,the problem of inefficient investment in enterprises has become increasingly prominent.In previous studies,the theoretical analysis is based on the assumption that the "rational economic man" as a prerequisite to analyze the factors that cause inefficient investment.However,with the continuous development of theoretical research,due to its assumptions,the traditional investment theory based on information asymmetry and principal-agent has been unable to effectively explain the inefficient investment behavior of enterprises.With the development of behavioral finance,the past rational rational hypothesis is gradually broken,The author adds the irrational state prevailing in the managers of the reality to the model,and puts forward the theory of overconfidence based on the manager's cognitive bias.At the same time,domestic and foreign scholars have found that the psychological characteristics of managers have a greater impact on investment decision-making behavior,so the need to combine the behavioral finance theory,based on the psychological self-confidence of managers to study the issue of inefficient investment.Due to the nature of the ownership of the enterprise,the manager's overconfidence performance and the overall investment efficiency of the enterprise are quite different.When it comes to China,the state-owned enterprise resource is under the control of the government.Compared with private enterprises,state-owned centerprises have great advantages in the resource possession and cost.The quality of the resource allocation directly affects the efficiency of investment as well.In addition,in terms of government subsidies,subsidies for state-owned enterprises are often greater than private enterprises.And for the support of national policy,the state-owned enterprises are usually at a more advantageous position in the market,which makes the managers of state-owned enterprises easy to get the psychological bias of overconfidence than the managers of private enterprises.This is highly possible to lead the inefficient investment behavior.Regarding this,based on behavioral finance theory,this paper comparatively analyzes the effect difference of overconfidence on corporate inefficient investment of the managers in state-owned and private enterprise as the sample data taken from the Shanghai and Shenzhen A shares of Listed Companies in 2011-2014.The result shows that the overconfidence of managers has a significant impact on non efficiency investment.Compared with the private listed companies,the managers of state-owned listed companies are more likely to lead to non efficiency,and they are more prone to excessive investment as well.Finally,after taking consideration of perfecting the mechanism of selection,motivation and supervision,improving the mechanism which restricts the overconfidence of managers,carrying out different supervision and motivation mechanism on the managers in different ownership of enterprises and improving the decision-making procedures of different companies,this paper puts forward some countermeasures and suggestions to alleviate the influence of Managerial Overconfidence on corporate inefficient investment.Based on the special economic system and background of China,this paper studies the impact of the investment on the efficiency of the investment from the perspective of the manager's overconfidence,deepens.the research content of behavioral finance theory and broadens the research field of the investment efficiency.The manager has overconfidence on the efficiency of business investment empirical evidence.