Analysis Of The Impact Of YM Company’s Investment Behavior From The Perspective Of Managerial Overconfidence

Investment decision is the key factor affecting the business performance of enterprises and plays an important role in enhancing the value of enterprises.Scholars’ research on corporate investment behavior has always been a hot focus in the financial field,Whether from the macro economic level or micro level of the enterprise,the research on investment behavior is of great significance.In the real market,more and more enterprises there are different forms of inefficient investment behavior,unable to maximize the value of enterprises,based on the traditional financial theory of “Rational-Economic man” hypothesis cannot explain the anomalies.Therefore,the foreign scholar Roll first brought the concept of “overconfidence”from psychology into the financial research of enterprises,It provides a new perspective to study the investment behavior of enterprises.This paper based on the above theory,using the case method and literature research,from the Angle of managers overconfidence,select YM company as the research object,through the measure of the YM company managers overconfidence psychology and studies of investment behavior,from the external environment,and corporate governance to explain managers overconfidence influence on investment decision-making mechanism.Secondly,in combination with the specific situation and financial data of YM Company,the consequences of investment decisions made by managers under overconfidence and the changes in accounting information quality under overconfidence behavior are analyzed.Finally,the conclusion is drawn: HJF,the manager of YM company,has overconfidence psychology;Overconfident managers increase the investment scale of enterprises,prefer diversified investment in investment direction,underestimate investment risk,and tend to high-risk and high-return fields.Moreover,their diversified investment brings discount effect,which has a negative impact on the quality of accounting information.On the basis of managers’ overconfidence,loose external financing environment and imperfect corporate governance promote the emergence of aggressive investment behavior.Therefore,company managers should try their best to avoid cognitive bias and correct the psychological tendency of overconfidence.At the same time,the internal governance structure of the company should be improved to reduce the ineffective investment decisions made by managers under the psychological bias of overconfidence,avoid the negative effects caused by them,improve the overall level of investment decisions of the company,and realize the maximum value.