Research On Investment And Financing Risks Of *ST Tengbang From The Perspective Of Managerial Overconfidenc

With the reform and transformation of Chinese market economy and the active development of capital market,investment and financing behavior as the daily activities of enterprise management,the resulting investment and financing risk not only becomes a common problem facing the growth and development of enterprises,but also the key factor of the life and death of enterprises.The academic circle focuses on analyzing the investment and financing risks of enterprises from the perspective of macro,industry,market,internal and external governance factors,and few scholars analyze the investment and financing risks of enterprises from the perspective of overconfidence of managers.Risk management theory research has shown that managers make decisions affect the effect of risk management,risk management is limited by managers of their own ability and cognitive biases in the external environment and managers to make risk management decision making is not always optimal,lead to managers’ own characteristics have a significant impact on corporate investment and financing risk,not managers overconfidence is the most common psychological characteristics.It is of great theoretical and practical significance to study the investment and financing risks of enterprises from the perspective of overconfidence of managers.Therefore,this paper takes Shenzhen Tengbang International Business Services Company(*ST Tengbang)as the research object,starts from the perspective of manager overconfidence,and adopts the analysis method of combining literature analysis and case study based on the research path of "psychology,behavior and results".This paper analyzes the adverse effects of overconfidence of managers of *ST Tengbang on investment and financing behavior and investment and financing risk.Through the study of *ST Tengbang,this paper draws the following conclusions: *ST Tengbang managers have the psychological cognitive bias of overconfidence,and this psychological cognitive bias has a significant adverse impact on the investment and financing risk of enterprises.Under this psychological cognitive deviation,the managers of *ST Tengbang have such unreasonable investment and financing behaviors as large debt scale,insufficient solvency,inappropriate debt maturity structure,too fast investment scale,obvious inefficient investment behavior,and investment cash flow beyond its means.Ultimately,the investment and financing risk of *ST Tengbang in 2019 and the following year has been at a high level.Based on this,this paper put forward based on the perspective of managers overconfidence from the construction of risk early warning system,strengthening the capital budget and financing risk control countermeasures of developing diversified financing ways,by strengthening the management of free cash flow,also attaches great importance to the investment project risk evaluation,to focus on developing core business of investment risk prevention countermeasures are put forward.