| Recently years, the scale of securities market in our country is expanding continuously, and some laws about the assets reorganization and equity acquisition is continuously improving and perfecting. So mergers and acquisitions in capital market are very active and more and more adopted by our country's listed companies.Firstly stepping from the development phases and current condition of mergers and acquisitions in listed companies in china, this dissertation revealed the some irrational behaviors in mergers and acquisitions of listed companies. Then by using behavioral finance theories which combine the theories of psychology, we analyzed the reasons of irrational mergers and acquisitions in listed companies from the following aspects: over-confidence, herd effect, regrets aversion, lose aversion, over-reaction, insufficient reaction and time preference. Among these theories, we chose over-confidence theory as the key one to explain the irrational behaviors of listed companies, besides that we introduced mergers and acquisitions model based on managers' overconfidence, which was put forward by Ulrike Malmendier and Geoffrey Tate in 2003. At last, we gave the empirical analysis about how the manager's overconfidence influenced the investment decision of listed companies. We got the following main conclusions: 1, if we do not consider the finance limit, then the mangers' overconfidence behaviors are positively related with the companies' investment level, they influence the investment decision by cash flow, and the sensitivity of cash flow is higher than those mangers that have modest confidence. 2, company's equity stimulation mechanism and listed company's governance structure are also the main factors to influence the investment decision. 3, under our special equity arrangement and governance structure in listed companies, overconfident mangers are more likely to undertake low effective over-investment behaviors... |
