Literature Review of Decision Behavior Biases of Enterprise Managers – Case study of overconfidence

摘要

In the era when knowledge operation becomes an economic growth mode, knowledge industry becomes a leading industry and knowledge economy becomes a new economic form, company operation ad management become more important. However, in company operation process, if managers make decision by virtue of their personal long-term management experience and traditional economic theories, they will show unadvisable behaviors. Managers must fully envisage behavioral situations of decision-making biases to help them better understand decision finiteness. This paper mainly knows deviant behaviors which may be caused by psychological factors of managers in investment decision-making process from the perspective of behavioral finance. Based on analysis of "overconfidence", this paper analyzes main causes of decision-making biases in the face of much information available and puts forward suggestions for enterprise managers as their reference in decision-making process.