Research On The Influence Of Managers' Overconfidence And Institutional Investors' Heterogeneity On Inefficient Investment

Investment is an important business activity of enterprises,which will not only affect the improvement of their own value,but also affect the development of China's economy.As managers in charge of daily operations,their behavioral decisions are crucial to investment efficiency.In the past,most scholars studied managers according to the hypothesis of "rational economic man",but with the development of behavioral finance,irrational behaviors caused by overconfidence gradually get attention.In contrast,managers who are better than average are more likely to be overconfident and more likely to make irrational investment decisions.Starting from the psychological bias of overconfidence of managers,it is of great significance to study the influence on investment.All the time,institutional investors are important external governance institutions.Most previous studies adopted a one-size-fits-all approach to institutional investors,that is,to study the whole.However,due to the existence of heterogeneity,such as different investment concepts and whether it is a pure investment relationship with the company,the governance effects of different institutional investors are likely to be quite different.In recent years,the rural revitalization strategy means that agricultural listed companies need to assume more responsibilities.However,in sharp contrast to this important task,the overall operation efficiency of agricultural listed companies is low,overinvestment and underinvestment are common and the occurrence mechanism is quite different.How to improve the investment efficiency of agricultural enterprises,remove excess capacity and optimize the allocation of resources is a difficult problem to be solved urgently.Therefore,this paper selects the data of a-share generalized agricultural listed companies in Shanghai and shenzhen from 2011 to 2018 as the sample,and classifies non-efficient investment as excessive and insufficient investment.Based on the theories of behavioral finance,information asymmetry,heterogeneous governance of institutional shareholders and equity balance,this paper analyzes and proposes hypotheses.By means of multiple regression analysis,the influence of managers' overconfidence on inefficient investment was analyzed,and institutional investors were divided into three dimensions,namely shareholding scale,independence and stability,to study the impact of heterogeneity on the relationship between overconfidence and inefficient investment.It is found that the increase of managers' overconfidence will aggravate the inefficient investment of agricultural enterprises.After the heterogeneity of institutional investors is added,it is found that both high shareholding scale and high stability can reverse the inefficient investment behavior of overconfident managers.There are two types of independent and gray types according to the independence.The independent type can significantly alleviate the inefficient investment caused by the overconfidence of managers,while the gray type cannot.Based on the above conclusions,it is concluded that overconfidence of managers is prone to over-investment and under-investment,while different types of institutional investors have different governance effects.According to this,this paper gives the following suggestions from the internal and external aspects: first of all,agricultural listed companies should establish overconfidence early warning indicators and enterprise value evaluation system,improve the investment decision-making process and management evaluation system;Secondly,appropriate to introduce institutional investors,focus on attracting independent institutional investors join,and reduce the cost of investor supervision by improving the internal information disclosure system and information transparency;Thirdly,the government should improve the relevant policy guidelines,attach importance to the development of independent institutional investors,relax audit standards and shareholding restrict ions appropriately.As for gray institutions,the government should strengthen audit and supervision,reduce the existence of gray space;Finally,we should focus on improving the internal governance of institutional investors and guide their healthy development.It is hoped that the above Suggestions can provide some reference to alleviate the problem of inefficient investment of agricultural listed companies.