Research On The Heterogeneity Of Executive Team And The Herding Behavior Of Enterprise Investment

Under the background of economic globalization and rapid development of information technology,investment has become an essential part of the long-term development of enterprises,and a key sign to measure the level of development of enterprises.The irrational investment decisions of top management team will not only lead to the increase of corporate financial risk,but also interfere with the judgement of stakeholders on the management of enterprises,which may cause fluctuations in the level of corporate performance.In recent years,some executives appear irrational investment behavior,especially in communications,IT services,real estate and other industries.The main reason is that these executives set a wrong investment philosophy,as follows: first,in order to improve the efficiency of the use of funds,they choose diversification strategy and blind investment to enter unfamiliar areas.new business will increase investment risk and disperse enterprise's core competitiveness,which seriously deviated from the initial investment target.Second,project investment of the long-term assets surplus.The company is blinded by a large amount of funds to buy the shares of other companies,and although they have gained control,they may gain considerable profits in the future.,to some extent,which wil bring the great pressure on management of enterprises and improve the company management risk coefficient,once daily production appear errors and no surplus funds for the turnaround,business will face great difficulties and make the enterprise into a difficult situation.Moreover,if the investment recovery period is longer,a large number of working capital will be frozen,and enterprises may miss other investment opportunities,which will have a negative impact on their market positioning and development.The investment behavior of enterprises and executive members personal characteristics is closely related,age and tenure heterogeneity is reflected in the experience and knowledge of the company,the difference of degree,occupation and education background affects corporate investment mode from professional skills and knowledge.Therefore,the heterogeneity of executives may have an impact on the herd behavior of investment.Our country is in the market economy transition period,the market system is not perfect,it is difficult to maintain the normal order of the market by the spontaneous adjustment of the market main body,but also needs the government macro-control andguidance to assist.Since the publication of the National Catalogue of Industrial Structure Adjustment Guidance,various industries have been clearly defined,and enterprises in this category have been encouraged to invest actively in new investment projects under the strong support of the policy,thus accelerating the pace of development.However,the economic benefits of restricted enterprises have declined sharply,and the level of investment has been reduced and it is on the verge of bankruptcy.Industrial policy may have a certain guiding effect on the investment rationality of corporate executives.When the company is in the category of industrial policy encouragement,senior executives 'investment decisions may appear possible herd behavior.On the contrary,when they are in the category of restriction or elimination,they may also inhibit the investment herd behavior.phenomenon.And the investment behavior of the executive is closely related to its own personal characteristics.This paper draws on the related theories of the senior echelon team,looks up and collates a large number of related literatures at home and abroad,puts forward the research hypothesis on the basis of previous research,explores the influence mechanism of the heterogeneity of the senior management team on the enterprise investment sheep behavior,and analyzes the role of industrial policy in the relationship between the two.The conclusion of the final study shows that the age and academic heterogeneity of the senior management team have positive influence on the behavior of investment sheep,while the heterogeneity of tenure and career background has negative relationship.Compared with the enterprises without the support of industrial policy,the heterogeneity of age and education level of senior team of enterprises supported by the policy increased the behavior of investing in sheep,and the relationship between occupational heterogeneity and corporate investment was also strengthened.