Study On The Influence Of Peer Effect In Enterprise Investment Decision

Over time,investment has expanded from within the country of origin to beyond the country of origin,and the emergence of the concept of traditional exports to today's international investment complex fully reflects the diversity and continuous development of society,and the level of human development known today is inseparable from various forms of sustained investment.Since the beginning of economic science,because investment is an important driving force of economic development and economic growth,but also because of the huge inequality brought about by information asymmetry,different ways of measuring investment efficiency and investment level have become the subject of discussion,so in the past few decades,the field of investment decision-making has developed rapidly in theory and practice.Although there is no single way to describe how a company makes its own investment decisions,risk awareness must be a major factor to consider when making investment decisions,decision makers cannot capture all the risks involved through normative models,and there is often frequent investment interaction between companies in order to obtain more information.Peer effect occurs when enterprises try to imitate the investment decisions of peer enterprises,and if they can understand how peer enterprises affect each other's investment decisions,it will help the enterprise to make better decisions and reduce investment risk,in order to study whether and how peer enterprises have influenced their investment decisions.This paper uses the data of A-share listed enterprises from 2008 to 2019 to construct a broad moment estimation model of the system.This paper first introduces the current situation of domestic and foreign research on enterprise investment decision-making,expounds the relevant concepts and theories of peer effect and investment decision-making,and then analyzes the mechanism of the influence of peer enterprises on investment and puts forward the corresponding assumptions,and constructs an empirical model to demonstrate whether the peer enterprise will have an impact on investment decision-making.Through empirical testing,the group regression of enterprises with different ownership,different regions and different listing years from the perspective of enterprise heterogeneity was carried out,and the economic policy uncertainty index,the government intervention index and the cross-investment of peer enterprises were introduced from the perspective of macro-environment heterogeneity.This paper further discusses the heterogeneous effect of peer effect in investment decision-making,in addition,from the angle of enterprise investment efficiency,measures the investment efficiency of enterprises by the size of residual severance,and makes the group return of under-invested and over-invested enterprises,and determines that the peer effect of investment decision-making is one of the root causes of investment distortion.Finally,from the point of view of enterprise performance,this paper analyzes the economic effect of peer effect in investment decision-making by measuring enterprise performance,performance and enterprise investment efficiency by the perspective of asset return.The results of this paper show that(1)there is a significant positive correlation between enterprise investment and peer enterprise average investment;(2)there are some differences between different groups,compared with state-owned enterprises,eastern enterprises and young enterprises are more susceptible to the investment decision-making of peer enterprises;and(3)from the perspective of economic consequence,on the one hand,The learning imitation effect between enterprises will improve the performance of enterprises,on the other hand,the peer effect in investment decision-making will aggravate the investment distortion.Finally,according to the conclusion of the study,the paper puts forward the relevant policy suggestions from the point of view of enterprises and governments,on the one hand,enterprises should enhance their competitiveness,broaden information channels,strengthen the interaction between enterprises,on the other hand,the government should pay attention to the influence of peer effect when formulating policies,and promote the positive interaction between enterprises.The innovation of this paper is that:1 The peer effect is mainly applied to the study of psychology and sociology,which has recently been introduced into the field of economics.Many studies of peer effects examine the impact of peers on real-world decision-making,such as corporate capital structure,mergers and acquisitions,and corporate governance.This paper examines the role of peer enterprises in shaping enterprise investment decision-making from a new perspective,and expands the literature on enterprise investment decision-making.(2)The existing research on enterprise investment decision-making is mainly on the peer effect between enterprises in the same industry,this paper defines the peer enterprise in the peer effect as the enterprise of the same region,not only the enterprise of the same industry,and studies the investment interaction between enterprises in the same region facing the same economic policy and market demand.(3)This paper uses the data of the last 10 years from 2009 to 2018 to study the conclusion more practical and valuable,and construct the generalized moment estimation to solve the endogenous problem of the model.In addition,this paper not only studies the influence of peer enterprises on investment decision-making,but also analyzes the economic effect of peer effect of enterprise investment decision-making.