A Study on the Influence of Investment Decision and Manager Overconfidence on Enterprise Investment Efficiency——Take Jiangsu Shuangxing Color Plastic New Materials Co., Ltd. As An Example

Abstract

The purpose of this article is enterprise investment behavior has always been a hot topic in corporate finance research, a highly concerned issue in enterprise management practice, and also faces many challenges. The research object of this study is Jiangsu Shuangxing Colorful Plastic New Materials Co., Ltd., the two objectives of this study were: 1)1. To clarified reduce the irrational and overconfident investment behavior of managers and improve the investment efficiency of Jiangsu Shuangxing Color Plastic New Materials Co., Ltd. 2)To confirmed that the emphasis on investment decisions and managers’ overconfidence have a positive impact on the investment efficiency of Jiangsu Shuangxing Color Plastic New Materials Co., LTD.

Quantitative methods are adopted, in which collect and organize data obtained for financial statements are used as an important tool for basic data collection. After processing, 204315 data of Jiangsu Shuangxing Color Plastic New Material Co., Ltd., etc. were obtained. In addition, the statistic program as SPSS 26 has applied on the dissertation. The qualify relations by using the theories discussed in the literature review but the testing in conceptual framework can calculate to explain Correlation Coefficients and Multiple Regression in each linkage.

The research results of LTD. found that indicating a direct relationship between variables and mutual influence. It is clear that overconfidence among managers is an important reason for inefficient investment behavior caused by irrational decisions,it is clear that the emphasis on investment decisions and managers’overconfidence have a positive impact on the investment efficiency of Jiangsu Shuangxing Color Plastic New Materials Co., Ltd., which meets the research purpose. Studying the impact of overconfidence among managers on enterprise investment behavior and attempting to provide new theoretical explanations for the phenomenon of inefficient investment in enterprises has important theoretical and practical significance.

Keywords: manager overconfidence, investment decision, investment efficiency, enterprise financial management

A Study on the Influence of Investment Decision and Manager Overconfidence on Enterprise Investment Efficiency——Take Jiangsu Shuangxing Color Plastic New Materials Co., Ltd. As An Example

Master of Business Administration (International Program), Siam University, Bangkok, Thailand