Automobile Industries Listed Company Of China Investment Herding Behavior Of Empirical Research

Automobile manufacturing, as the economic development of China pillar industry, its investment scale and investment efficiency is crucial to China's economy. Why its investment increased in recent years? Whether each enterprise's investment decision is based on its own actual situation or just blindly follow the trend within the industry there is herd behavior? If there is herd behavior, then what are the impact factors? How to avoid this herd behavior to make vehicle manufacturers'investment tends to rational? That is the problem that the article will solve.This research object is before 2002 in Shanghai exchange listing of automobile industry of listed companies, according to certain standards after screening, scored 23 companies as the sample. To test herding behavior on the existence, According to the company size,the selection of before 3 companies as reference company, first by the law and statistical method, inspection after 20 companies and the former three companies investment coherence, inspection results show that after 20 companies before the current investment and investment between the advancements of the three companies has high consistency. In order to make more rigorous research conclusion, this paper also for both the causality test, inspection results suggested that the former three companies investing is the advancements after 20 companies, the reason of the current investment proving the car industry listed company investment herding behavior of existence.Based on various influencing factors and the paper's target, I choice the degree of investment in the flock as the explained variables and the core of company governance - board characteristics as explanatory variables of the affection factors of the herding behavior empirical research. The results show that the size of the board, the chairman of stocks are significant negative correlation to herding behavior, and the proportion of the independent directors,directors and general manager whether syncretic,director of the board of directors,salary share ratio of the board of directors,record of formal schooling have on significant effect to herding behavior.Finally, to avoid automobile manufacturing enterprises investment irrational herding behavior and promote the rationalization of the efficiency of investment and development, I suggest avoid automobile manufacturing enterprises should perfect the system of independent directors, standardize the board behavior, perfecting the board incentive system, and senior managers to improve their own quality, investment decision democratization countermeasures.