An Empirical Research on the General Manager Overconfidence and Investment Decision for the Listed Companies

From the behavioral corporation finance viewpoint,this paper studies the relationship between the general manager's overconfidence in Chinese listed company and the corporation investment decision with theoretical and empirical analysis.The conclusion is:(1)A quarter of general managers possess overconfidence characteristic in the listed company of actualizing stock incentive.(2)The general manager's overconfidence is not only positive relativity with the corporation investment level,but also the investment level of them is more sensitive to cash flow than the level of moderate managers else.(3)The investment-cash flow sensitivity is positive relativity with the decreasing of equity capital financing.(4)The overconfident general manager is more likely to result in inefficient overinvestment behavior in corporation decisions,under the especial stock arrangement and corporation governance structure of Chinese listed company.