Herd Behavior Of Corporate Investment,Management Background Characteristics And Firm Value

In recent years.it has been common for companies to blindly follow the trend of investment.Investment in new energy industries is overheated,and the electronics and Internet industries are highly competitive.From the fierce killing of network companies such as take-out software and live broadcast platforms to large-scale financing of large-scale financing of shared bicycles,the case of corporate follow-up investment has aroused widespread concern among the people of the country,including academia.Herd behavior in corporate investment also reflects the manager's "irrational" problem.On the one hand,on the basis of the information asymmetry theory,assuming that the manager is a rational economic person,he is influenced by reputation and compensation factors in the investment process,and will make behaviors that may damage the value of the firm in order to maximize his own benefits.On the other hand,the behavioral finance theory holds that the non-validity of external markets and the irrational factors of internal managers influence the financial decisions and overall value of the company and increase the likelihood of herd behavior.Throughout the existing domestic and foreign literature,the study on herd behavior of corporate investment showed that Chinese corporate investment does have herd behavior and the role of herd behavior on corporate value is not uniform.However,the conclusion of the impact of herd behavior on corporate value is not uniform.Most scholars believe that herd behavior has a negative impact on corporate value through theoretical analysis which is lack of empirical data test.In reality,the continuous follow-up investment of enterprises not only leads to the decline of the investment rate of the enterprises themselves,but also increases the financial risks.It also leads to the deterioration of the overall competitive environment of the industry and overcapacity,which seriously damaged the sound development of the industry.However,the herd behavior also reduced the information cost and investment risk for some small enterprises,and brought some new investment directions for the traditional enterprises in the transition period.Therefore,this paper takes 90%of the listed companies in the industry in 2011-2017 as the research object.Therefore,this paper selects the 2011-2017 A-share listed companies as the research object.Through empirical analysis,the test confirms whether Chinese enterprises have serious investment herding behavior and its impact on corporate value,and the influence of different property rights to the relationship between two variables.This analysis is to improve the mechanism of investing in herd behavior on corporate value,and enrich the relevant theories.In addition,this paper creatively increases the background characteristics of executives as moderator,and examines its regulatory role in the relationship between corporate investment herd behavior and corporate value in order to provide a certain reference for the company to rationally arrange the senior management team to restrain the negative impact of the manager's irrational investment behavior on the value of the enterprise.The empirical results show that there are widespread herd behaviors in the investment process of listed companies in China,and they have a negative impact on corporate value.This effect is more pronounced in non-state-owned enterprises.The background characteristics of some executives play a regulatory role in the relationship between herd behavior of corporate investment and firm value.The increase in the proportion of female executives and the proportion of executives with political backgrounds has a negative effect on the negative impact of corporate investment in herd behavior on corporate value.However,the increase in the proportion of senior executives with economic and management education backgrounds has contributed to this negative impact.It can be seen that in the case of Chinese enterprises with obviously inevitable corporate investment in herding behavior,increasing the team's robustness while maintaining the team's vibrancy and sensitivity to environmental changes helps to curb irrational factors in the herd behavior,helping companies to increase corporate value through investment decisions.