Study On The Effect Of Psychological Deviation Of Kuailu Group Management On Inefficient Investment

The development of behavioral finance and high echelon theory broke the rational hypothesis of managers,and a lot of research shows that managers are bounded rational,and their psychological deviations will affect the efficiency of investment,resulting in loss of investment projects.Shanghai kuailu group is one of a typical representative,its manager Shi Jianxiang of whos excessive self-confidence and short-sighted psychological deviations led to inefficient investment in the enterprise over-investment and vicious capital increase,resulting in its investment in the film "Ip Man 3" loss of this project,and Resulting in bankruptcy.This paper first defines the relevant concepts and basic theories on psychological deviations,inefficient investment and effects of psychological bias on inefficient investment in this case.Secondly,it discusses the theory of corporate governance theory,high echelon theory and behavioral finance theory in analyzing the influence of manager's psychological bias on inefficient investment.Meanwhile,it determines the measurement method of this article according to the measure of the scholars.Then,based on the previous measurement methods and the specific circumstances of the case,the impact of the psychological deviation of Kuailu group manager Shi Jianxiang on the group's inefficient investment is analyzed.Finally,the conclusion of this case is obtained,and a warning is put forward to the managers of our country.This paper analyzes the impact mechanism of managers' psychological deviations on inefficient investment,and conducts a case on the specific situation of Kuailu group.It proves that the manager has excessive self-confidence and short-sighted psychological deviation,the inefficiency of the enterprise Investment,excessive investment and vicious capital increase would be caused and exacerbated.To this end,There should be proposed to strengthen the psychological construction of managers to improve the enterprise system,investment projects for a variety of investment efficiency analysis,thereby reducing the psychological bias on the impact of inefficient investment.