Research On The Influence Of Managerial Herd Investment On Enterprise Value

Investment issue, as an important part of the economic benefits for the enterprise, has been studied for a long time. Study on the investment decision has been built on the assumption of rational people and the efficient market hypothesis. However in recent years, people gradually realized that there are significant limitations on the "rational" managers assume. Managers often make "irrational" behavior, which affect corporate financial management objectives-maximizing the value of enterprises. Currently, a number of scholars focus on the managers herd behavior and its causes of generation, reverse thinking that analyzes the formation mechanism of herd behavior, the study on herd behavior and the impact of the efficiency of investment and enterprise value is still lacking.Based on this, the study of the relationship between managerial herd behavior and enterprise value using a combination method of theoretical and empirical. Normative research part of this paper make a comprehensive review of the relevant research scholars on herd behavior, business value, and then use both traditional finance theory and managers irrational psychological bias theory to analysis the causes and effects of herd behavior mechanism of enterprise value; in empirical testing, the paper use the deviation of investment of the enterprise own and the investment of industry average in business investment managers to measure the deviation of herd behavior, and considering the unique of our country, we study on whether the enterprise in the of the industry which has country’s encourage to development has a different impact on the enterprise value of herd behavior. By descriptive statistical analysis, correlation analysis, multiple regression analysis and other statistical robustness test method, we verify the theoretical analysis concluded.Through theoretical and empirical research, this paper argues:(1) managers herd behavior has its own unique system, economic, cultural, and psychological factors in formation under a special capital market background;(2) in the industry which is encouraged development, herd investment can be said to be a rational investment behavior, expand investment means better seize the opportunity to have a significant positive relationship with the enterprise value;(3) the enterprise value of no state encourage support for the industry is less than the enterprise value in encouraging and supporting national enterprises;(4) in no encourage and support national industries, business investment is an irrational herd behavior, the higher the degree of blind conformity investment, the lower the enterprise value, this duplication phenomenon is more of a destroy of enterprise value.