Abstract

The rational investment risk is based on the “economic man” hypothesis. Along with the advancement of modern academic research, the hypothesis has got more and more questions and challenges. On the basis of expatiating on the traditional theory of investment risk, this research uses behavioral economics and psychology related proof and theoretical basis, expounding that the irrational factor of overconfidence has an influence on enterprises investment risk. Through the quantitative factors and reference model of granger causality test., this research obtains the cause and effect of managers’ overconfidence and the enterprise investment risk. Therefore, this research provides academic support the for the humanist management strategy of the enterprise.

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