CEO Power, Ownership Concentration And Enterprise Investment Herding Behavior

Corporate investment behavior is related to the future growth value of the enterprise.And power is the key factor affecting the allocation of resources.As the highest manager of enterprise,the power intensity of CEO has a great influence on the investment behavior of enterprise;As a kind of investment behavior,investment herding behavior is also a hot spot of enterprise financial research.Therefore,it is of great significance to explore the relationship between the CEO power and the enterprise investment herding behavior.The herding behavior of enterprises is not only influenced by the strength of internal CEO power,but also closely related to the ownership structure.Ownership concentration,as an important representative of ownership structure,is of great importance in corporate investing management behavior.Whether the ownership concentration can effectively adjust the CEO influence on corporate investment herding behavior or not? What is the mechanism of these three between the past research did not give direct empirical evidence.In addition,under the special system background of our country what about the influence of CEO power under different property rights has on the corporate investment herding behavior?Based on the problems above,the paper takes the 2003-2015 Shanghai and Shenzhen A shares of listed companies as the research object.First of all,it tests the relationship of the CEO power and the enterprise investment herding behavior;secondly,on the basis of the research and starting from the perspective of corporate governance,the research will focus on the ownership concentration into the herding behavior of enterprise to explore the influence of interaction effect between the ownership concentration and the CEO power on the corporate investment herding behavior;Finally,in the further discussion,according to the nature of property rights the paper groups the full samples and discusses the influence of the CEO power under different property rights on the herding behavior of enterprises.The research finds:(1)The CEO power is negatively related to the corporate investment herding behavior.The greater power of the CEO has,the less obvious it is to invest in herding behavior of enterprise.At the same time,compared with the state-owned enterprises,the influence of the CEO power on the herding behavior of enterprises is more significant than the non-state-owned enterprises;(2)The ownership concentration is positively related to the herding behavior of the enterprise.The more concentrated the equity is,the more obvious the herding behavior is;(3)Higher ownership concentration will weaken the negative relationship between the CEO power and the corporate investment herding behavior.According to the research conclusions,the paper puts forward policy guidance from the state and the enterprise.When strengthening the supervisory function of the board of directors,the selection mechanism of CEO should be improved and the supervision and control of the CEO should be strengthened.Besides,the enterprise can establish external expert advisory system and promote the healthy and sustainable development of the national industry so as to adjust the degree of investment flock,optimize the allocation of resources and enhance the value of enterprises.The main structure of the paper is as follows: the first chapter is the introduction,introducing the main structure of the article.From the second chapter to the fourth chapter is the main part of the article.The part combs and includes theories and literatures from domestically and foreign countries about the CEO power,the ownership concentration and the investment herding behavior.On the basis of the theoretical analysis,the paper puts forward some related hypotheses.And these hypotheses get tested by empirical methods.The fifth chapter,based on theoretical analysis and empirical analysis,the research conclusions are drawn and some relevant suggestions are put forward.