Development And Inspiration Of Behavioral Corporate Finance

Behavioral corporate finance is a new field in economics that recently becomes a subject of significant interest to west countries, and strongly challenges the modem corporate finance theory. This article introduces systemically the development process of behavioral corporate finance theory, compares it with modem corporate finance theory in many aspects, and present some insights to its development prospect, and provides a general theoretical skeleton of behavioral corporate finance and its contents in security-offering market timing,dividend policy and companies' M&A. Finally the article introduces the theoretical and practical importance of behavioral corporate finance in financial decisions of listed companies in China.